Gareth Manning, Gleaner Writer
FOLLOWING A row between Sagicor Allnation in the United States and some of its older clients over terminated medical policies, insurance officials in Delaware say the termination of group policies is a normal business practice.
Delaware-based Sagicor Allnation Insurance Company told its affected customers in a letter that their policies were terminated because the insured group had been consistently underperforming. Sagicor Allnation is a subsidiary of the Barbados-based Sagicor group, one of the Caribbean's leading financial institutions. The group operates in 19 Caribbean countries including Jamaica, Trinidad and Barbados that jointly contribute the majority of its revenues.
TERMINATION
Darryl Reese of the Delaware Insurance Department told the Financial Gleaner that, terminating the policies is legal so long as the termination is stated in the company's policies. He said the company's decision must be communicated to the insured group within 90 days.
In its letter to clients sent earlier this year Sagicor Allnation claimed its actions were in accordance with cancellation provisions set out in its policy. A perusal of its letter showed the notice was sent out May 1, which gave clients 61 days notice. Clients say they received their letters in June.
Sagicor Allnation offered the terminated clients a new policy designed specifically for adults 50 and over as well as a refund of part of their premiums.
The company has so far refused to comment on the issue that affects several Jamaican and other Caribbean nationals.
The irate clients have called the move unethical and say they have been left without protection when they need it most.
"Many of this group cannot get insurance because of their advanced age, or are forced to accept limited insurance with exclusions because of recently acquired medical conditions," one of the terminated policyholders stated.
Sagicor Allnation is one of two American insurance companies belonging to the Barbados-based Sagicor group. The group also owns American Founders Life.
The group posted remarkable results following several catastrophic events last year, raking in Bds$65.7 million in net profits with a market capitalisation of Bds$1.1 billion.
Sagicor Allnation, which falls into the group's other Caribbean and International grouping, posted joint revenue of $110.4 million last year, an increase of 19 per cent. Sagicor had specifically acquired Allnation so it could get control of Allnation's variety of individual international health products, designed primarily for high net-worth individuals living outside the United States.
In 2001 Sagicor group acquired 76 percent of the Life of Jamaica Insurance Company Limited, one of Jamaica's largest insurers.
