Insurance firm lays off local workers
(CNS Business): Despite upbeat press statements recently about the success of the captive insurance business in the Cayman Islands, one firm has laid off a number of local workers. Sources tell CNS that around four Caymanians have been made redundant from the local office of Marsh, but the firm is offering no details of the job losses. A spokesperson for Marsh said that the firm has a long-standing policy of not commenting on personnel matters.
Admitting recent staffing changes in the Cayman office, the spokesperson told CNS Business, “Out of respect for the people impacted by these changes, and for reasons of confidentiality, we unfortunately cannot comment on this matter.”
Marsh Management Services in Cayman is a small subsidiary of the global insurance and risk management firm, Marsh Captive Solutions.
In a recent press release Kieran O’Mahony, who is the senior vice president and client services leader at Marsh Management Services Cayman Ltd and also the Chairperson of the Insurance Managers Association of Cayman (IMAC), noted changes in the industry as a result of the Affordable Care Act in the USA and the ripple effect that has had.
“What we are seeing industry-wide is the effect of two opposing forces,” said O’Mahony. “On the one hand we are seeing healthcare systems merge due to a drive for synergies and economies of scale, so where there were two or even three captives heretofore, now post-merger, only one remains, which reduces the overall number of captives. On the other hand, there is an increase in the size, capitalization and usage of the remaining captives as they take on new and expanded areas of risk that would not have even been contemplated a mere 5 years ago – such as cyber, non-employed physicians and employee medical stop loss risk.”
It is not clear if the changes have led to the reduction in local workers at Marsh or other causes.
Category: Finance, Financial Services
