Dec 2005 Financial News

Sagicor Terminates Elders' Medical Plan

Dec 06, 2005

A number of middle-aged Jamaicans and other Caribbean nationals insured with a Sagicor subsidiary in the United States have had their medical insurance terminated.

The Sagicor group, based in Barbados, is one of the Caribbean's leading financial institutions. The group operates in 19 Caribbean countries, including Jamaica, Trinidad and Barbados that jointly contribute most of the group's revenue. The United States-based, Sagicor Allnation Insurance Company, is the group's only office outside the Caribbean.

In a letter to its clients, Dalaware-based Sagicor Allnation Insurance Company says it terminated the coverage because the insured group has been consistently underperforming. The insurance was terminated in July this year. The company says the action applies to all comprehensive major medical policies and is in accordance with cancellation provisions set out in its policy. Dependents are included in the terminated policies.

CLIENTS IRATE
But some terminated clients are irate at the company for its decision. In a letter, one terminated client contends that the company did not warn them that their policies were about to be terminated and that their insurance class was created just for the termination exercise.

"While it is acceptable and admirable for the company to seek to make profits, it is unethical and unacceptable to do so by taking clients' money for years when they are young and healthy, under the false pretext of 'providing them with the protection against eventuality' for life, and then terminating their policies when the need for such protection is more likely," the source adds. The termination resulted in a loss of medical insurance for some elderly people, while others have settled for limited insurance that does not cover recently acquired illnesses, the complainant said.

Formerly owned by Blue Cross Blue Shield, the company was fully bought by the Sagicor in 2001. It offers health insurance to an international clientele.

When The Gleaner contacted officials at the company's Delaware offices in the U.S., vice-president of underwriting, Kenneth 'Bruce' Jackson said: "We do not wish to make a
comment."

NEW POLICY
However, in its letter to clients, Sagicor Allnation says clients may apply for a new policy with a revised schedule specifically designed for adults 50 and over. Additionally, they will be refunded part of their premium. This is calculated based on the length of time the insured was at risk and the refund may be used to fund the premium due on the new policy.

Sagicor posted remarkable results following several catastrophic events last year, taking in Bds$65 million in net profits. In 2001, it acquired 76 per cent of the Life of Jamaica Insurance Company Limited, one of Jamaica's largest insurers.

Sagicor Allnation, which falls in the group's Caribbean and International grouping, posted joint revenues of Bds$110 million last year, an increase of 19 per cent. This region, however, recorded a loss of Bds$17 million, due to an unusual large number of claims resulting from Hurricane Ivan devastation.

Gareth Manning, Gleaner Writer
The Financial Gleaner
Tuesday, 6th November, 2005
http://www.jamaica-gleaner.com/gleaner/efg/02-Dec-05/localnews/local4.htm