Scotia launches tech-driven general insurance agency

Jamaica’s number two banking group is carving out new space in the competitive general insurance market through the formation of Scotia General Insurance Agency, SGIA, which will operate under the brand name ScotiaProtect.

The agency, headed by Gary-Vaughn White, will deal primarily in residential, automobile and contents insurance.

White, a Scotiabank senior vice-president in charge of collateral protection, with responsibility for the Caribbean, Central America, and Uruguay, since January, will be supported at Scotia General by senior manager Kuyan Wright.

ScotiaProtect was designed initially for Scotiabank customers. The agency is therefore not writing business for persons who are not connected to the banking group, but will eventually extend its offerings to the broader market, White said.

Scotiabank signalled its intention to enter the general insurance market last year, when Scotia Group Jamaica President and CEO Audrey Tugwell Henry told shareholders the bank would be entering the market in response to the needs of Scotiabank’s customers.

Scotia Group operates five business segments: treasury, retail banking, corporate and commercial banking, investments, and life insurance.

The company now joins a competitive field and will initially pitch ScotiaProtect to bank customers who need to secure mortgages, property and other valuables.

There are six life insurance companies, including Scotia Jamaica Life, 11 general insurance companies and 13 registered corporate insurance agencies regulated by the Financial Services Commission. Rather than operating as a full-fledged company, Scotia General will join the agencies.

White said the company embarked on a recruitment drive in 2022 to fulfil the start-up needs of the new subsidiary, whose work, he added, is heavily technology-driven.

“The business model as we have it is strongly supported by digital engagements and transactions, complemented by general insurance advisers and customer service representatives, who will service customers off the platform as needed,” he said.

The ScotiaProtect sales portal went live on Tuesday, February 21.

The cost of setting up the new business was not disclosed, but White said the most significant expenditure related to the creation of a proprietary, digital protection platform.

“It will be the main customer-facing platform for our new general insurance products. We expect this will revolutionise the way customers buy general insurance into a quick and easy process, using the power of digital technology,” he said.

GK General Insurance will be underwriting SGIA policies 100 per cent. Consequently, SGIA will not require reinsurance coverage, White said.

neville.graham@gleanerjm.com