Interview with Erdulfo Nunez, CEO of Insurance Corporation (ICB), Belize

10 Mar Interview with Erdulfo Nunez, CEO of Insurance Corporation (ICB), Belize

Can you give us an overview of ICB — how does the company position on the market today, what have been some of your main achievements so far?

ICB has one of the largest branch networks in Belize, with at least one branch in every district of the country. In the Cayo District for example we have five branches. We are a general insurance company, so we do everything — except life insurance, although we are exploring the possibility of that in the future. We continue to grow our product offerings, for example, we have recently added Travel Insurance to our line of products, which has been very successful.

ICB is considered one of the top-three insurance companies in the country. We started in a small building in 1981 as a two person operation and have grown into what we are today. It is still very much a family company and all our board of directors are close relatives or friends and all Belizean. We are very proud of that and would like to keep it that way for the foreseeable future.

How would you assess the current state of Belize’s insurance sector and what do you see as the key challenges and emerging trends within the industry today?

The great thing about insurance is that as the country develops, so does the need for our services. Motor insurance and property insurance have been the more traditional lines of general insurance for example; but even with these products we are seeing an evolution as the demand for electric vehicles increases, as well as solar powered and energy efficient homes in Belize. We have had to adapt to the changes as the country moves forward.

We are also seeing growth in different industries in Belize; agriculture, tourism, construction and business process outsourcing. All these sectors need insurance as a safety net to mitigate their risk and with that they offer opportunities for our local insurance providers.

One of the main challenges affecting Belize is climate change, with the extreme weather events that we are seeing all over the world. What is your strategy in the face of these events?

One of the ways that insurance companies protect themselves is by purchasing reinsurance cover. The cost of reinsurance is a challenge and is beyond our control. For example, we didn’t suffer any major losses this year here in Belize, however Florida did and I’m sure that some reinsurance companies suffered major losses as a result. They will in turn pass the cost on to us. The costs associated with climate change trickles down to us and we either have to absorb the cost or pass it on to consumers.

What sets ICB apart from other insurance providers in Belize and how does your client-centric approach impact your competitive position in the market?

We prefer to set up branch offices and we are very selective about the agents that we work with and that has been a key factor in building relationships in the communities that we service. We try as much as possible to get people from the local area to work with us at those branches and build long-term relationships with people who live there. We do community service in all our locations and try to contribute to local society which, I think, sets us apart from other insurance companies.

Can you share ICB’s growth and expansion plans in the coming years and the new markets or areas are you targeting for future growth? 

We developed branch offices throughout the country, but we are now outgrowing our own physical presence. Dangriga, Orange Walk and Placencia are all areas that will need expansion in the near future. In terms of new products, we are seeing a need for cybersecurity related products, but we need to build the infrastructure to be able to offer that to our clients and it’s not something that is easy to do or is well known in Belize. Agriculture and Tourism related products and specialized products related to these industries are also areas that we want to focus on.

I also truly believe that the insurance industry has a responsibility to protect the more vulnerable sectors of our society and although we have launched a couple of micro-insurance products with moderate success, I think we have to double down on our efforts to find products that will protect those that may have been isolated from the traditional forms of insurance. This includes developing products that will cater to our micro, small and medium enterprises that are extremely important to the growth of our people and our economy.

As Belize’s tourism sector continues to grow, the demand for travel insurance has risen. With many readers from Florida interested in Belize, why is travel insurance such an important option and why can they feel assured with ICB?

Even if you have a life insurance policy, a lot of them have deductibles and there may be penalties if you claim from your primary cover. The good thing about travel insurance from ICB is that, firstly, you don’t have any deductibles and secondly it is very cost effective at $18 for 21 days of coverage and all medical emergencies are covered without exception.

The policy is available for purchase online on our website and it’s very easy and straightforward. When you are traveling, you just want to relax and have fun and you may not be focused on what if something goes wrong, but there is always that possibility. Although we cannot prevent accidents from occurring, we can help you to cover your expenses and get you back home should the unfortunate occur.

How can ICB play a role in mitigating the financial impacts of natural disasters and do you see a growing opportunity for insurance products tailored to environmental risks in Belize? 

The insurance industry must play a role in mitigating losses that have now been exasperated due to climate change. I think we have to take on a greater role in advising our clients on how to best protect their investments, adapting new and better standards and keeping them abreast of what is happening internationally. We will also continue to adapt to environmental risks and develop products that will be beneficial to our clients as the country moves forward.

What is your final message about the insurance industry in Belize to our 17 million readers of the Miami Herald in Florida? 

I’d like to thank everyone for taking the time out to read some of my views about my company and the insurance industry in Belize. I’d like to take the opportunity to invite you to visit our beautiful country and enjoy the many natural wonders that we have been blessed with in Belize. From Miami it’s only a short flight away. I promise you won’t regret it. For those looking for great investment opportunities, Belize is certainly somewhere to explore, whether you are looking for a good startup or a retirement type of investment, there are great opportunities here in Belize and for those looking to protect your investments, kindly reach out to us here at ICB.