A few years into Key Insurance’s integration within the GraceKennedy Group, Chairman Don Wehby says he is exploring more ways to maximise synergies across the group’s insurance businesses.

“…The future for Key, let me summarise by saying the best is yet to come. We are looking at synergistic values between GKGI and Key Insurance to see how the GK Group and Key shareholders can benefit going forward,” said Wehby, who was speaking at the company’s annual general meeting on Wednesday.

GKGI is the GraceKennedy General Insurance company, which was previously known as Jamaica International Insurance Company (JIIC).

He added that a dedicated team, led by Steven Whittingham, has been tasked with identifying and implementing these synergies. Whittingham is the chief operating officer of the GraceKennedy Financial Group with direct oversight of GraceKennedy’s insurance underwriting, insurance brokerage, merchant banking and investment businesses across the region. He is a member of the GraceKennedy executive and also leads the group’s mergers and acquisition initiatives.

Wehby’s directive comes as part of a broader mandate for all companies within the GK Group, including the insurance segment, to meticulously review their operations and extract efficiencies.

GraceKennedy acquired Key Insurance between 2019 and 2020, a takeover that bailed out the struggling company which was consumed by losses. Since then, Key has seen a turnaround in performance buoyed by leadership and staff changes, as well as improvements in its product and service offerings.

Key Insurance is just one of many insurance businesses under the GraceKennedy Financial Group. The group also comprises Scotia Insurance Caribbean Limited, GK Life Insurance Eastern Caribbean, GK General Insurance, Canopy Insurance, Allied Insurance Brokers, GK Insurance Eastern Caribbean, GK Insurance Brokers.

“I have mandated all the companies in the GK Group, including Key and the insurance segment to go through with a fine-tooth comb to see how they can extract more efficiencies as an insurance segment,” Webhy said.

“When we started off, we spoke about sustainable growth and innovation; I would say that we got a good grade for that. We spoke about customer centricity, as you know our digital platform is doing very well. We said that we were going to improve on internal processes. I think there is room for improvement, but we are doing pretty well in that,” he added.

According to Wehby, there is a strong correlation between employee engagement, profitability, and overall company performance. He attributed the significant increase in revenue and profitability, reaching $2.5 billion and $77 million respectively for financial years 2023, coincided with a rise in the employee engagement score from 67 per cent to 73 per cent. It marks the strongest revenue performance to date for the insurance company.

“That is why we have been very successful, our employees are dedicated, they have been loyal and focused on the strategic goals of key insurance and the wider GK Group,” the chairman said.

Insurance revenues of Key continued on the same trajectory for the first quarter of 2024, up 19.2 per cent when compared to the prior period. The company attributed the growth to the steady expansion premiums in its motor vehicle portfolio and continued marketing activity across social media and advertisements to drive revenue growth.

General Manager Tammara Glaves-Hucey sought to reassure shareholders of Key’s continued growth for the remainder of the year, with a strong focus on motor insurance and more muscle behind other products such as travel insurance through recent launch of a travel insurance portal on its website.

“We are focused on growing our business across all revenue lines. Motor insurance remains a priority for us. This year we launched a travel insurance portal on our website to boost business in that segment ahead of the Olympics,” Glaves-Hucey said.

Operational efficiency also remains a top priority for the company.

“As it relates to operational efficiency, we are focused on managing our claims expense. We are also focused on improving our receivables management,” she added.

Strategic adaptations

With domestic interest rates potentially declining, Key Insurance is prepared to adjust its investment strategy to maximise returns, Glaves-Hucey said. Additionally, in response to predictions of an above-average 2024 Atlantic hurricane season, the company is closely monitoring climate change effects and adjusting its risk management strategies accordingly.

Digital innovation continues to be a driving force, with enhancements to the website’s functionalities and expanded 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. The monitoring and optimisation of reinsurance arrangements are also key components of the strategy to seize potential opportunities, the company said.