How would you say the sector has evolved in recent years and how would you compare it to other countries in the region?

Traditionally, insurers in Antigua were English-based companies. The country then went through a five year period where we had about seven hurricanes, which forced some of these companies to leave. As a result of this, local agents became companies themselves. Currently things have shifted back, because the small local companies are having difficulties getting their capital base together to continue in business. It’s ironic how, after having stepped up to the plate, they have been basically squeezed out of the market because they are not big enough players, which leads us to forecast amalgamations in the future if this tendency continues.

What are the major challenges in the Antiguan insurance market and what is being done to address them by the government and private sector?

One of the biggest challenges for local general insurers is the need for more capital. Due to this, some companies have gone out of business and others have been taken over by bigger regional companies. We have to consider this under the light of the global economic crisis which started in 2007, 2008, and had quite a significant impact here. We saw some big failures, such as the Stanford Group or British American Insurance, which had a huge impact on Antigua, and a direct impact on many businesses’ cash flow.
As a result of this, a large number of new anti-money laundering or anti-terrorism laws and legislation have been put in place, and compliance is now a major challenge.

What type of insurance is going to grow in the Antiguan market, what niches and segments represent opportunities for companies like yours?

Property insurance, mainly. The CIP (Citizenship by Investment Program) is doing well, so we are seeing more and more movement there.

What can you tell us about Kelsick’s expansion strategy in the local market?

We are clearly a niche player. Because of our size, we tend to offer a more personalized service, which means quicker response times, etc. In essence, that is what we are going to be focusing on in the future. To talk about expansion is not our intention right now. In 2004 we increased our portfolio about 25%, which was phenomenal, but managing it was complicated because we weren’t performing as well as we should have. We are thinking about selective and calculated growth. We want to be careful about how we do it.

Where do you see the company in the next five years?

Probably opening another satellite office in Antigua.
In terms of insurance, Antigua would benefit from having a world-class player operating here. If you don’t have choices in terms of carriers, they have a lot of leverage over you. We have maybe four big insurance companies currently operating here and that is too much of an oligopoly. There are too many restrictions for intermediaries such as ourselves.

How important is human capital training in Kelsick’s approach? Is enough being done to train the industry’s workforce?

A few years ago we formed the Insurance Institute, and that has been a huge leap in terms of training newcomers to the business. The Institute here offers many useful programs that were not available before. It involves three-month study periods and I believe you have to take 9 subjects all together. We also do a lot of training through the Chamber of Commerce.

What are the main advantages that Kelsick has to offer its clients when compared to other insurers here?

We have been here long enough to understand the local market and its intricacies. We have sterling products from one of the best insurers in Antigua and we deal with our client’s problems clearly and swiftly as they come up.

I would like to end with an open message for our readers.

I would have to say that Antigua is a very special place to be. Doing business in Antigua is currently very interesting because we have recently turned a page economically. If we can attract the right investors we are going to grow in leaps and bonds.