-White Paper –

Consumers’ Guarantee Insurance

“Embracing the future with INNOVATION and GROWTH.”

- ABSTRACT -

The serene island of Barbados, inhabited by an approximate 284,000 people is the

most developed country in the Eastern Caribbean.

While the people enjoy a moderately high standard of living in a well-developed mixed

economy and have foreign direct investments flowing in, they are prone to great risks

which can cost them dearly if preventive measures are not taken.

Besides houses are susceptible to unforeseen accidents that can ruin them. Accidents

can be due to natural calamities like fire, storms, flood, lightning, earthquake to name a

few. As already mentioned before There are other forms of threat are burglary,

malicious damage, collision or impact damage and the list goes on.

While statistics reveal an alarming increase in incidents that threaten life, home, and

the contents , protection is offered by a „coat of arms‟ of insurance. This ‘Coat of

Arms’ is the very Barbadian National Symbol.

The purpose of this whitepaper is to study the nature of Home Insurance that is

available in Barbados today with special reference to the policies offered by Consumer‟s

Guarantee Insurance (CGI).

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Is Your Home a ‘House of Cards’?

Ever tried building a ‘House of Cards’?

It’s a slow and a patient process in which a person, very passionately, places a card on top of another and

simultaneously constructs vertical layers. Standing acutely on their blades, these vertical cards shoulder the

horizontal ones, balancing them delicately. This crisscross array of a fine matrix of cards constitutes a sacred

geometry of the effort that goes into erecting it. As the paper- edifice stands completed, the builder beams with pride

upon looking at it. The sight of it is worth all the effort. Phew!

Swoosh! No sooner is it built than a gust of breeze blows in through the window ripping apart the ‘house’ by the

middle, as if struck by lightning. The cards get dislodged out of their places. They topple one over another. In the

blink of an eye, the cascading wave motion gains momentum. The cards tumble down and snowball into an

avalanche only to come crashing down and collapse into a heap of paper mass. Thus, tearing down on all the

monumental effort. Sheer dimensional necrosis!

This is only game. Reality, however, is not much different. Every person needs a shelter. Owning a flat, a house, a

building or any residential place where one may stay, feel secured and call it one’s home is a dream nurtured by all

and sundry. For some people owning several houses may be easy. However, for

most of the people owning even one house can be difficult or a

distant dream. As such, houses essentially symbolize the culmination

of a lifetime’s efforts and savings Not just that. A person’s house also stands testimony to a temple of

beliefs that holds one and one's family together. Protecting it against

the slightest threat thus becomes not only crucial and imperative but

an action of paramount importance.

What is the Solution?

As stated above, threat or damage to one’s house could happen in any form- nature’s fury, electronic jeopardy or

human error. In all cases the result is common- damage and

destruction of the asset .No one wants it and hence the precaution

measures are taken. While prevention is said to be better than cure; in

this scenario prevention is the only cure. Building or owning a house is an investment which involves lot of time,

effort, money and energy. As protecting it becomes quintessential,

one needs to ensure it’s safety. Should there be any mishap, there

should be provision to recover it’s financial worth as well. Insuring

one’s house is a way to derive financial security. Home insurance is

the solution when it comes to protecting one’s house.

Contents

1. Introduction

2. The Big Picture -Scenario of Home Insurance in Barbados

3. What is Home Insurance?

4. Major Player in Home Insurance Market : Consumers’ Guarantee Insurance (CGI)

5. How does CGI Home Insurance provide protection?

6. Features CGI Home Insurance

7. Contents Insurance

8. Conclusion

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1. Introduction

Accidents do not ring your doorbell with a prior appointment. On the contrary, they don't come

knocking at your door either. Instead, they barge through ripping apart all that is in it‟s way and

take you by surprise when you least expect it.

In such a moment of crisis, are you prepared to take damage-control measures? Are you in a

position to resurrect yourself and reinstate your refuge to it‟s former glory?

Rising a phoenix from the ashes does not necessarily mean that you have to slash and burn

your fingers. You can be prepared to curb such an incident more efficiently, should it befall.

Moreover, if your house has been unfortunate enough to experience an accident, then you can

restore it in a smart way. Getting your home insured can provide you with the peace of mind as

you can lay back and relax.

Barbados - one of the Caribbean‟s leading tourist destinations is home to some 285,000 people.

An independent state that is , Barbados enjoys a constant warm all year round temperature.

However beware of its wet season which runs from June to November - although the

temperature doesn't really drop much the rainfall is double that of the drier season.

Since 2004, the economy of Barbados has witnessed tremendous growth with multi-

million dollar commercial projects coming alive and foreign direct investments streaming

in and upcoming residential projects as well. However, being amongst the most densely

populated countries it has also experienced the escalating risks that threaten homes –

with instances of burglary, fire , accidents, landslides and so on.

Accordingly, over the years, the insurance industry has taken leaps and bounds to

provide safety, security and peace of mind to the people. Furthermore, this has been

achieved through innovative solutions like those of Consumers‟ Guarantee Insurance

(CGI) which have revolutionized this home insurance industry.

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2. The Big Picture – Home Insurance Scenario of Barbados

Though Barbados has been lucky in dodging the devastating storms that have ripped people and places apart, it is still prone to infrequent hurricanes, periodic landslides and other natural calamities. There are dangers associated with accidents and other unforeseen circumstances in

which a person faces the risk of losing one‟s house. Besides, there are the dangers

associated with accidents at home as well.

Regardless of where one‟s home is located on the

island, in Barbados, any property located inland is

quite as much at risk as compared to a property

which is located on the coast where it could be a

victim of the high seas or tsunami, or be prone to

land slippage or flooding or lie unprotected and

exposed to windstorm.

Availing home insurance thus becomes imperative

for a stable and secured future.

Prevention is better than cure. However in many situations prevention is the only cure. This preventive measure or cure is called Home Insurance when one‟s home is threatened with potential or any kind of harm. The home insurance industry in Barbados aims to provide coverage and protection to homes in all the aforesaid matters.

Based on Information from Reuters dated 15th July 2013 - “Research and Markets: The Insurance Industry in Barbados, Key Trends and Opportunities to 2017”, “Barbados insurance industry is well established but underwent a challenging time during the review period (2008-2012). Difficulties began with the government bailout of the CL Financial Group and its subsidiaries, and issues were compounded by the global and domestic economic downturn. Barbados established itself as a strong domicile in which to conduct international insurance business and is ranked among the seven-leading captive domiciles in the world.” ( Source: http://www.reuters.com/article/2013/07/15/research-and-markets-idUSnBw155927a+100+BSW20130715 )

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3. What is Home Insurance?

The Basic Concept of a Home Insurance Simply put, Home Insurance is basically the cost necessary to reinstate a person‟s house in the event of a mishap. It is basically a contract in which the homeowner pays an amount (called premium) to an insurance company for a fixed period of time. This payment is distributed over term- intervals. In return, the company takes on the onus of financial assistance to the homeowner in the event of mishap or upon the expiration of the contract. The homeowner who pays the premium amount to the company is then said to be „insured‟. There are different types of Policies to protect one‟s home and one‟s belongings. Such a policy requires that the insured be of the house. In the event of a calamity, the extent to which the refurbishment of the house along with the owner‟s possessions will take place will depend on the policy detailing as agreed upon at the time of commencement of the contract. Besides, the clauses governing the repayment amount also include the inflation consideration. The amount repaid to the owner is based on the extent to which one has insured oneself. Such companies lay down various schemes and one is protected only in the ambit of all that the Policy covers. Schemes range from basic coverage of home protection to the protection of home contents and so on. In recent times, many more policies have flooded the market which cater to the various needs of consumers. While these various companies present their offers in impressive displays, the basic concept of financially protecting one‟s home remains unchanged. A smart homeowner needs to evaluate judiciously the amount of financial protection one would be needing and subsequently avail a policy that covers his house and his possessions. Once your house is insured ,it ceases to be a „house of cards‟. It,then, turns into a “haven of peace and delight”!

4. Major Player in Home Insurance Market: Consumer’s Guarantee Insurance (CGI)

Among the major players in the market, Consumers‟ Guarantee Insurance (CGI)

emerges as one of the most prominent names.

Since it‟s foundation on November 1, 1993, the company has built it‟s reputation

through innovation and value addition to the insurance industry. It‟s deep understanding

of consumer‟s needs and concern for the greater good have led it to come up with novel

solutions that have revolutionized the domestic insurance market.

The company has introduced many new innovations to the local insurance industry.

Products like “Homemate” which have catapulted CGI to the forefront of the industry

over the last two decades. The company offers competitive pricing with a customer

oriented focus in delivering products and services.

CGI insures over $4 Billion in property assets. It is the second largest auto insurer with

premium income of over $55 million annually. Approximately $25 million worth of claim

payments are made annually.

Today in response to the increased risks that endanger people,

property and even business, CGI counteracts it by bridging the gap

between a challenging economic climate and the needy consumers‟

pockets. State of the art online services and the introduction of

Monthly Insurance Plans enable customers to pay their instalments in

a way that is most convenient to them.

What makes CGI different and a cut above the rest?

A smart homeowner needs to evaluate judiciously the amount of financial protection one would be needing and subsequently avail a policy that covers his house and his possessions. This where a company like Consumer‟s Guarantee Insurance (CGI) steps in and helps home owners to assess accurately how much to spend without unnecessary expenditures. It is this approach, a customer oriented point of view that sets CGI apart from other insurance companies and makes it stand out.

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5. How does CGI Home Insurance provide protection?

CGI Home Insurance covers the home and contents of the insured by offering

protection against damage and peril. The perils covered vary depending on the level of

coverage that one purchases.

There are three levels of cover available:

1.Residential Fire Only - covers damages caused due to

Fire

Lightning

Explosion

Thunderbolt and

Subterranean Fire

2.Residential Fire and Limited Perils - In addition to the above (Residential Fire

Only) this also covers damages resulting out of

Burglary and Housebreaking

Theft by Forcible Entry

Riot, Strike, Civil Commotion

Malicious Damage

Escape of water, collision or impact damage

3. Residential Comprehensive - In addition to the

Residential Fire and Limited Perils, Residential Comprehensive also covers damages

that arise out of

Flood

Windstorm

Falling Trees

Rainstorm

Earthquake

Public and Employer’s Liability

Volcanic Eruption

Rent/Alternative Accommodation

6. Incredible Features of CGI Home Insurance.

CGI offers low cost home insurances that are very easily affordable.

‘Free home valuation service’ is provided to all customers so that they only purchase the coverage they actually need.

Unparalleled level of service is provided to customers at any point of time.

CGI has introduced a range of online services that replace tedious paperwork and make the whole process quicker, easier to understand and available to the customers anytime at their convenience.

Free home insurance quotes and instalment calculators that enable customers to compute premiums that suit their budget perfectly.

A free service called Home Mate available to CGI Comprehensive Homeowner Policyholders. Home Mate is a 24-hour emergency response team trained in resolving household problems like plumbing, electrical, security, cleaning and property claims service.

Special Discount with CGI –As everyone likes to save, with CGI, one can be entitled to

the following discounts when upon seeking CGI Home Insurance and protecting one‟s

home.

BARP (Barbados Association of Retired Persons) - BARP members are entitled to a

special rate on the premium for their home.

7. Contents Insurance

· Household goods, clothing, personal possessions, fixtures

and fittings, in short, anything that is not permanently

attached to the structure of the building generally

constitutes the Contents of a House. Besides, there are

valuables like jewellery items of gold, silver or other

precious metals, watches, various equipments and

instruments that can be insured.

What coverage does CGI Contents Insurance provide?

CGI Contents Insurance covers the contents of the

insured by offering protection against damage and peril.

The perils covered vary depending on the level of

coverage that one purchases.

There are three levels of cover available:

(1) Fire Only, (2) Fire and Limited Perils (3) Comprehensive Coverage.

CGI offers low cost insurances that are very easily affordable.

Unparalleled level of service is provided to customers at any point of time.

CGI has introduced a range of online services that replace tedious paperwork and make the whole process quicker, easier to understand and available to the customers anytime at their convenience.

Free insurance quotes and instalment calculators enable customers to compute premiums that suit their budget perfectly.

- CONCLUSION -

Based on the very recent information released from Reuters dated 15th July 2013 in “Research and Markets: The Insurance Industry in Barbados, Key Trends and Opportunities to 2017”, “The global and domestic economic downturn pounded the Barbados Industry scene from 2008-2012. Barbados however has established itself as a strong domicile and is ranked among the seven-leading captive domiciles in the world.

Given the dramatic increase in risks concerning accidents and unforeseen incidents that affect

homes in Barbados today, the need for insurance cannot be diluted. The insurance industry is

on the rise.CGI offers policies that conveniently meet the different budgets of different pockets

and provide maximum coverage.

The company has a sound track record of smooth operations concerning reimbursement and

claim recovery. Besides, it‟s prompt customer services facilitate instant resolution of queries

and offer of unconditional support. Features like live chat enable customers to directly

communicate in real time with the customer service representatives in total confidentiality.

At the core, it is the deep respect for every customer‟s need which drives CGI to provide for

the very best. It is with this motto of adding value to every customer‟s life that it relentlessly

innovates; and today it solely stands on this foundation with a reputation built over the past 20

years.

Essentially, what CGI provides to every customer is an unfaltering protection or a „coat of

arms‟. CGI has been standing tall over 2 decades now and beams with PRIDE for the

customer satisfaction that it delivers Secondly to make the lives of others easy , CGI has

always constantly pushed it‟ s limits , though its innovation and sheer hard work In other words

it has paved it‟s ways by being INDUSTRIOUS all throughout in living up to it‟s commitment..

Thus in a nutshell, the very spirit of the Barbadian National Symbol lives through the actions of

Consumers‟ Guarantee Insurance (CGI).