Home' Trinidad and Tobago Guardian : January 16th 2014 Contents BG8 | NEWS
BUSINESS GUARDIAN www.guardian.co.tt JULY 2012 • WEEK FOUR
More than a year since it
acquired Algico, the US-
based Pan American Life
(PALIG) plans on intro-
ducing more products
to the T&T market.
Confident that the T&T market is a lucrative
one, Bruce Parker, senior vice president, global
life insurance, said he anticipates upward
growth for the company.
"We are working on a product now called
Universal Life. It s a product that will allow
people to buy permanent life insurance and
have part of it in a cash value. Universal Life
is a flexible product that is used in the middle
to affluent market place."
The company explained: "Life Access is a
Universal Life product that has a cash value
Further, Universal Life products are not new
to the T&T market, but "Pan American s Life
Access Universal Life product will have unique
riders and benefit options that are currently
not offered by others."
Permanent Life Insurance is an insurance
policy that lasts a lifetime versus a specific
The product is expected to be launched in
the second quarter of 2014.
Parker spoke to the Business Guardian last
week to highlight the company s perform-
"We don t think everyone would be drawn
to the product. It is not a product that is going
to be for everybody. The individual would be
able to manage their policy and they ll have
flexible premiums. So they could put more
money into the product if they want to, and
have it go right into savings, or they can put
less money in after. It s a period of time where
they might have to put less money into the
"Truly, they ll have what s called a flexible
premium life insurance policy where they can
come in, buy the right amount of life insurance
for what their need is, whether it is business
or personal, and with their agent, would be
able to manage that policy over a long period
He added: "It s a policy. Once you buy (a
policy) for $100,000 five years from today, if
you need another $100,000, you can take that
policy and make it a $200,000 policy without
having to go out and buy a second policy.
There are some unique features to it and for
certain consumers, it s going to be a really
good value proposition."
The target market for this product are the
young person starting off in the working world
and the business owner.
"It is a number one selling product every-
where else. When bought the company, we
knew we wanted to bring it in here. We sell
it in the United States, Central and South
America. In our life insurance business, it is
about 80 per cent of our premiums."
Is Clico an asset?
With more than 600 employees in its T&T
operations, Pan American is not interested in
acquiring any of Clico s business.
"I don t think there is anything we would
want to acquire. We like the business we
bought here and that s the business we want
Overall, the company has a "good" rela-
tionship with the Inspector of Financial Insti-
tutions at the Central Bank of T&T.
The company does business in 22 regions
in the Caribbean. Pan American is mainly
Central America focused with operations in:
• the United States and Mexico
• El Salvador
• Costa Rica
New legislation for the insurance industry
Commenting on the impact the new Insur-
ance Bill 2011 would have on the company,
Parker said it would mean increased training
""We think it will take a little more work
on our part from a compliance standpoint.
We re going to have to train our agents and
get them prepared. We are prepared whatever
law goes into effect to follow it and to prepare
our company to be able to operate within that
T&T is Pan American s centralised hub.
This means the company "does a lot of cen-
tralised services out of T&T---underwriting,
administration, IT, so this serves as the hub
for what we call our Caribbean region. In
Curacao and Barbados, we have small oper-
ations there to some underwriting and some
claims. Virtually everything from a back office
standpoint is done here."
In the other jurisdictions, 40 per cent of
its revenue is generated while in T&T, 60 per
cent of its revenue is generated for this region.
For the year ended December 31, 2013, the
company reported double-digit revenue. The
annual report is to issued by June 2014. The
board of directors meeting is be held at the
end of February.
Describing Pan American s strategy in the
market as "bullish", Parker said the company s
competitors are "very good."
"What I mean by that is Sagicor, Guardian
Holdings, Maritime, Tatil and the new players.
I think they are admirable competitors. We
don t all have the same products, so we are
not all completely aligned with each other
from a competitive standpoint. Some sell
investment products and life, some sell life
and investment products and annuities, some
sell general insurance. We all overlap.
The company is not interested in the motor
class business as "it is not our expertise."
We re managing the close block of business
we had from Algico. That s all the general
insurance we have. We are a pure life and gen-
eral insurance company. That s our strategy.
Pan American is not into the investment
side of things.
"We haven t done it anywhere else. Cur-
rently, we feel we re a big player in life and
health insurance and we wouldn t be a big
player on the investment side, so that s one
of the reasons why we are not in it, you have
to be a pretty good-sized player."
"What we did earlier on is that we redid
our term insurance rates to be more attractive
to the affluent and merging affluent business
owner and got our products competitive. We
also introduced a major medical product into
the market place which is very well received.
That is a product for the affluent and someone
who wants to have a top tier and major medical
product. We are excited about it because you
have a lot of offshore companies that offer
those products. We took that product and had
it licensed here in T&T."
More resources have been put into the group
insurance department in order to foster growth
in Pan American s Group health, pension and
"We ve had very large accounts come over
to us in the last 18 months," Parker said.
looks to launch
PHOTO: SHIRLEY BAHADUR
We don't think everyone
would be drawn to the
product. It is not a product
that is going to be for every-
body. The individual would be
able to manage their policy
and they'll have flexible
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