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04 03 2013 04480 963X150px
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Charles Taylor launches Catastrophe Insurance & Asset Protection Program for Latin American SME Businesses

Charles Taylor launches Catastrophe Insurance & Asset Protection Program for Latin American SME Businesses

02 February 2017

Charles Taylor launches Catastrophe Insurance & Asset Protection Program for Latin American SME Businesses

Many Latin American SME businesses face a significant, out-of-pocket cost to cover their catastrophe insurance deductibles, which would impact profits following a claim. Now the new Catastrophe Insurance & Asset Protection Program from Charles Taylor could pay SME’s deducibles with an immediate insurance payment. Insureds also benefit from the ability to build up US Dollar reserves.

How it works: Most catastrophe insurance policies include deductibles of two percent, which means that policyholders face shortfalls in the event of a claim. The Catastrophe Insurance & Asset Protection Program uses a captive insurance segregated cell company in Bermuda to provide insurance which covers these shortfalls.

Policyholders own their own captive cell, meaning that all premiums built up in the insurance company belong to them, less fees and operating expenses. They are held in US dollars, protecting policyholders’ assets from potential currency devaluation and future currency controls.

In the event of an insurance claim, reinsurance or a combination of reinsurance and the policyholder’s accumulated premiums will pay their insurance deductible in full. If no claims are made, the policyholder will be able to use the built up premiums to reinvest in their business– or to cover the cost of future premiums.

Alvaro Ortiz, President and Chief Executive, Charles Taylor, Panama, said:
“A major earthquake or other natural disasters could leave SME businesses in Latin America struggling with depleted cash flows after covering full catastrophic deductibles. Our new program is designed to replace that cash flow and enable these SME clients to continue their profitable operations.

“Policyholders can protect their businesses from an insurance payment shortfall at the same time building up US Dollar reserves, protecting them from potential currency devaluation in their own country. They can also retain control of their US Dollar assets built up in their captive cell to reinvest back into their business.”