JIS News

The Financial Services Commission (FSC), regulator of the insurance industry, has assumed temporary management of Dyoll Insurance Company Limited as of today (March 7).
Making the announcement at a press conference this morning at the FSC’s New Kingston offices, Executive Director, Brian Wynter explained that the action came against the background of the devastation caused by Hurricane Ivan on the Cayman Islands last September.
Mr. Wynter explained that in the insurance industry, the Category Four hurricane and the related storm surges in that island were seen as a 1,000-year catastrophe event, and given the extent of the damage in the Cayman Islands, insurers had come under extreme financial pressure.
“This event in the Cayman Islands created conditions that are highly unusual. The result is that the experience that Dyoll is having in its portfolio in the Cayman Islands is not different from the experience that other insurers in the Cayman Islands is having on their portfolio,” he noted.
In the case of Dyoll Insurance Company Limited, he said “the FSC was advised in December of the company’s exposure in the Cayman Islands and of plans to inject new capital in order to meet the claims and continue to grow its business”.
He said that in January, the company advised the FSC that it was successful in obtaining about half of the injection of new capital to meet the insurance claims that were emerging. However, by February “it became evident that their level of exposure continued to expand, and that the new capital was not realized,” Mr. Wynter informed.
At this point, the FSC began to work with the principals of Dyoll to identify new investment sources, allowing time for the necessary due diligence. However, it became clear that the company’s exposure continued to increase and new investment was not being realized in the short term.
It is against that background that the FSC has assumed the role of Temporary Manager of the Company, in order to: establish the true position of the company; address the matter of settlement to its claimants, and ensure that its policies will remain in force.
“I must make it perfectly clear that no other insurance company in Jamaica is similarly exposed as a result of Hurricane Ivan. Nevertheless, the FSC is undertaking a rigorous analysis of insurance companies doing business in Jamaica and overseas,” Mr. Wynter pointed out.
As part of this review, the FSC will be calling on the technical skills that are available through its colleague regulator, the Bank of Jamaica.
The FSC has since appointed Kenneth Tomlinson, Managing Director of Business Services Recovery Limited (BSRL), to guide the operations of Dyoll.
Mr. Tomlinson’s role includes, but is not limited to: continuing or discontinuing Dyoll’s operations; stopping or limiting payments of its obligations; employing any necessary officers or other employees; executing any instrument in the name of the institution; and initiating, defending and conducting any action or proceedings to which it may be party, in the name of the institution.
Mr. Wynter noted that policyholders should fully understand that the Temporary Manager has been put in place to protect their best interest.
“For policyholders who have outstanding claims, the Temporary Manager will determine the extent of the assets and liabilities as quickly as possible. For policyholders without claims, efforts are being made to transfer your accounts to another insurance company,” he informed.
Mr. Wynter said it should be noted that the FSC was already in receipt of indications of interest to take on Dyoll’s Jamaican portfolio. “This offer is being pursued and policyholders will be advised by the Commission on the status of that offer as soon as possible. Success in this matter means that these policies would be transferred to another insurance company,” he said.
Now that the FSC has assumed temporary management of Dyoll, the Executive Director said he wished to “assure policyholders, shareholders, the public and the media that we will keep them informed within the ambit of the law”.
Mr. Wynter encouraged all persons seeking information to call the FSC’s toll free Help line 1- 888-FSC-HELP.

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