The Cayman Islands National Insurance Company (CINICO) has announced that it now offers home contents insurance with parametric cover.
This parametric solution is designed to automatically pay out pre-agreed amounts to cover incidental expenses without the need to make a claim in the event of a Category 3 or higher hurricane passing within a certain distance of the Cayman Islands.
Within 14 to 21 days of a hurricane passing through, homeowners could receive a payment to cover expenses not normally covered by insurance, CINICO said.
Regardless of whether the home is damaged or not, homeowners insurance holders will receive assistance for additional grocery shopping, securing the property, and post-storm cleanup costs.
Michael Gayle, CEO of CINICO, said: “We are delighted to be able to offer home contents insurance and include parametric insurance cover as a standard feature in new policies.
“Outside the Cayman Islands, Parametric Insurance protection is sometimes available to home insurance holders at an additional cost. However, for the first time in the Cayman Islands, this benefit will be included as a standard benefit in CINICO home insurance policies.”
According to the announcement, CINICO’s parametric insurance cover is not only for owners of buildings insurance, but is also available as a separate, standalone policy for homeowners with buildings insurance policies, whether or not they are insured with CINICO, to offset the impact of the excess.
Gayle sits on the board of the Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), which provides parametric coverage to many Caribbean and Central American governments and will disburse more than $80 million to countries affected by Hurricane Beryl within 14 days of the hurricane’s passage.
“CINICO raises the bar in the insurance industry and delivers on our promise to bring innovation to the insurance industry,” added Gayle.
He continued, “Providing reliable and timely assistance to Cayman Islands homeowners, particularly during hurricanes, helps achieve this goal. By including Parametric Insurance coverage as standard, CINICO ensures that homeowners have access to fast, reliable assistance when they need it most.”
This home insurance project is part of CINICO’s mission as a government-owned insurance company to ensure a resilient insurance sector.
Gayle explained: “Due to reinsurance restrictions, the number of policies we can issue for the remainder of the year is limited, particularly in light of what could be a strong hurricane season.
“We expect our Parametric product to be a successful addition to the insurance market and anticipate that we will need to seek additional capacity to meet demand in 2025. Innovation is critical to the resilience of the Cayman Islands insurance sector and we will continue to look for further opportunities to improve products and services.”
CINICO’s new home insurance with Parametric coverage follows the launch of its new motor insurance product in March 2024.
Both insurance offerings are part of the company’s broader expansion plan to ensure that Cayman Islands homeowners and residents have access to sufficient insurance capacity and coverage in an increasingly fragile insurance market.
