GLAVES-HUCEY…We are focused on expanding our business across all revenue segments. Motor insurance remains our number one priority. This year we launched a travel insurance portal on our website to expand in this area ahead of the Olympics.
Several years after Key Insurance was integrated into GraceKennedy Group, chairman Don Webby says the company is looking at further ways to maximise synergies across the group’s insurance businesses.
“One word about the future of Key is that the best is yet to come. We are looking at the synergies between GKGI and Key Insurance and how GK Group and Key shareholders can benefit going forward,” said Wehby, speaking at the company’s annual general meeting on Wednesday.
GKGI is GraceKennedy General Insurance, formerly known as Jamaica International Insurance Company (JIIC).
He added that a dedicated team led by Stephen Whittingham is tasked with identifying and executing these synergies. Whittingham is Chief Operating Officer of GraceKennedy Financial Group and has direct oversight of GraceKennedy’s underwriting, insurance broking, merchant banking and investment businesses across the region. He also serves on GraceKennedy’s executive team and leads the group’s mergers and acquisitions efforts.
Webby’s instructions came as part of a wider order calling on all companies within the GK Group, including its insurance division, to thoroughly review their operations and make them more efficient.
GraceKennedy acquired Key Insurance in 2019 and 2020, rescuing the struggling company that was losing money. Since then, Key has been turning around thanks to changes in management and staff, as well as improvements to its product and service offerings.
Key Insurance is just one of many insurance businesses under the GraceKennedy Financial Group, which also includes Scotia Insurance Caribbean Limited, GK Life Insurance Eastern Caribbean, GK General Insurance, Canopy Insurance, Allied Insurance Brokers, GK Insurance Eastern Caribbean and GK Insurance Brokers.
“I have instructed all of the GK Group companies, including Key and the insurance division, to look closely at how we can achieve greater efficiencies within the insurance division,” Webby said.
“When we started, we talked about sustainable growth and innovation and I think we scored well on that front. We also talked about customer centricity and as you know, our digital platform is doing very well. We also said we would improve our internal processes. I think there is room for improvement but we are making good progress on that front,” he added.
Webby said there is a strong correlation between employee engagement, profitability and the company’s overall performance. Strong revenue and profitability increases in fiscal 2023, reaching $2.5 billion and $77 million, respectively, coincide with an employee engagement score rising from 67% to 73%, he said. This is the insurer’s strongest revenue performance to date.
“That is why we have been so successful, our employees are committed, loyal and focused on the strategic objectives of our core insurers and the GK Group as a whole,” the chairman said.
Key’s insurance revenues continued on the same trajectory in the first quarter of 2024, increasing 19.2% sequentially. The company attributed the growth to steady growth in premiums for its auto portfolio and continued marketing efforts through social media and advertising, which drove revenue growth.
General manager Tamara Graves-Hughesy sought to reassure shareholders that Key will continue to grow for the rest of the year by focusing on car insurance and increasing its focus on other products such as travel insurance through the recently launched travel insurance portal on the company’s website.
“We are focused on growing our business across all revenue segments and motor insurance remains a top priority for us. We launched a travel insurance portal on our website this year to grow in this area ahead of the Olympics,” Grubbs-Hughesy said.
Operational efficiency is also a top priority for us.
“In terms of operational efficiency, we are focused on controlling billing costs. We are also focusing on improving our accounts receivable management,” she added.
Strategic Adaptation
With the possibility of domestic interest rates declining, Key Insurance is prepared to adjust its investment strategy to maximize returns, Grubbs-Hughesy said. Additionally, with the 2024 Atlantic hurricane season predicted to be above normal, the company is closely monitoring the impacts of climate change and adjusting its risk management strategy accordingly.
Digital innovation continues to be a driving force, with website enhancements and an expansion of product offerings aimed at transforming the customer experience. Looking ahead, Key is also focused on improving broker relationships and increasing customer awareness to drive growth. Reinsurance contract monitoring and optimization are also key elements of the strategy to capture potential opportunities, according to the company.
