-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 Consumers Guarantee Insurance (CGI).

Is Your Home a House of Cards?

Ever tried building a House of Cards? Its 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 ones 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 lifetimes efforts and savings Not just that. A persons 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 ones house could happen in any form - natures 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 its safety. Should there be any mishap, there should be provision to recover its financial worth as well. Insuring ones house is a way to derive financial security. Home insurance is the solution when it comes to protecting ones 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 its 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 its 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 Caribbeans 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 multimillion 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 ones house. Besides, there are the dangers
associated with accidents at home as well.

Regardless of where ones 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 ones 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-andmarkets-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 persons 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 ones home and ones 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 owners 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 ones 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: Consumers Guarantee Insurance (CGI) Among the major players in the market, Consumers Guarantee Insurance (CGI) emerges as one of the most prominent names. Since its foundation on November 1, 1993, the company has built its reputation through innovation and value addition to the insurance industry. Its deep understanding of consumers 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 Consumers 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. ==================================

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 Employers 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 ones 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 20082012. 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, its 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 customers need which drives CGI to provide for the very best. It is with this motto of adding value to every customers 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 its ways by being INDUSTRIOUS all throughout in living up to its commitment.. Thus in a nutshell, the very spirit of the Barbadian National Symbol lives through the actions of Consumers Guarantee Insurance (CGI).