BY MAUREEN N. MARATITA
Journal Staff
Tokio Marine Pacific Insurance Ltd. will cease business in Guam and the Northern Mariana Islands inside of this year, according to Journal sources.
The Journal received the following statement on May 16. “TMPI can confirm that [it] is considering strategic options and is working closely with the Managing General Agents and interested parties to ensure a smooth transition. Further details will be provided in due course as the options are formalized.”
Tokio Marine is the underwriter for carriers Nanbo Insurance, TransPacific Insurance Brokers Corp. and Calvo Insurance’s SelectCare Health Plan, which is a government of Guam provider.
Peter P. “Sonny” Ada, president of Ada’s Trust & Investment Inc. is a member of the board of Nanbo Guam Ltd., which is a general sales agent for Tokio Marine for property and casualty insurance. In the Northern Mariana Islands, Pacifica Insurance Underwriters Inc. is the general agent for Tokio Marine.
Nanbo is celebrating its 55th anniversary this year. Ada told the Journal, “We’ve been the carrier for them for 50 of those years.” He said Tokio Marine’s departure will be significant. “It loses capacity for Guam,” he said.
This would not be the first time that Guam has lost underwriting. After Aviva pulled out of the Mariana Islands in 2003, Century Insurance stepped into the role of underwriter in 2004 for Aon in Guam and Saipan, according to Journal files.
Ada said Nanbo was aware of the exit of Tokio Marine. “We have options,” he said. “There are options and alternatives.”
TakeCare Insurance is also a government of Guam provider.
Sources also said that the government of Guam will self-insure health insurance.
Industry experts put the cost of self-insurance of GovGuam at between $120 million and $150 million. The government would also need a third-party administrator to manage what is estimated at hundreds of thousands of claims per year, experts told the Journal. The GovGuam self-insured prescription benefit plan is administered by TakeCare Insurance.
Krystal Paco-San Agustin, director of communications in the Office of the Governor, told the Journal on May 16 that the government of Guam is already seeking a third-party administrator, with bids due May 19. The bid is featured on the Guam Department of Administration’s website.
“The Department of Administration has submitted its full set of responses to bidders’ enquiries,” she said. Responses on the DOA site included the information that “GovGuam is still considering the employee contribution strategy for FY 2024.” The RFP for the third-party administrator is for fiscal 2024, effective Oct. 1, when the fiscal year starts.
Tokio Marine Pacific falls within Tokio Marine North America Inc., a subsidiary of Tokio Marine & Nichido Fire Insurance Co. Ltd. The Tokio Marine group has headquarters in Tokyo and operates worldwide. The group has been in aggressive acquisition mode but also reportedly suffered losses in fiscal 2022 due to COVID-19 and natural catastrophes. mbj
Journal Staff
Tokio Marine Pacific Insurance Ltd. will cease business in Guam and the Northern Mariana Islands inside of this year, according to Journal sources.
The Journal received the following statement on May 16. “TMPI can confirm that [it] is considering strategic options and is working closely with the Managing General Agents and interested parties to ensure a smooth transition. Further details will be provided in due course as the options are formalized.”
Tokio Marine is the underwriter for carriers Nanbo Insurance, TransPacific Insurance Brokers Corp. and Calvo Insurance’s SelectCare Health Plan, which is a government of Guam provider.
Peter P. “Sonny” Ada, president of Ada’s Trust & Investment Inc. is a member of the board of Nanbo Guam Ltd., which is a general sales agent for Tokio Marine for property and casualty insurance. In the Northern Mariana Islands, Pacifica Insurance Underwriters Inc. is the general agent for Tokio Marine.
Nanbo is celebrating its 55th anniversary this year. Ada told the Journal, “We’ve been the carrier for them for 50 of those years.” He said Tokio Marine’s departure will be significant. “It loses capacity for Guam,” he said.
This would not be the first time that Guam has lost underwriting. After Aviva pulled out of the Mariana Islands in 2003, Century Insurance stepped into the role of underwriter in 2004 for Aon in Guam and Saipan, according to Journal files.
Ada said Nanbo was aware of the exit of Tokio Marine. “We have options,” he said. “There are options and alternatives.”
TakeCare Insurance is also a government of Guam provider.
Sources also said that the government of Guam will self-insure health insurance.
Industry experts put the cost of self-insurance of GovGuam at between $120 million and $150 million. The government would also need a third-party administrator to manage what is estimated at hundreds of thousands of claims per year, experts told the Journal. The GovGuam self-insured prescription benefit plan is administered by TakeCare Insurance.
Krystal Paco-San Agustin, director of communications in the Office of the Governor, told the Journal on May 16 that the government of Guam is already seeking a third-party administrator, with bids due May 19. The bid is featured on the Guam Department of Administration’s website.
“The Department of Administration has submitted its full set of responses to bidders’ enquiries,” she said. Responses on the DOA site included the information that “GovGuam is still considering the employee contribution strategy for FY 2024.” The RFP for the third-party administrator is for fiscal 2024, effective Oct. 1, when the fiscal year starts.
Tokio Marine Pacific falls within Tokio Marine North America Inc., a subsidiary of Tokio Marine & Nichido Fire Insurance Co. Ltd. The Tokio Marine group has headquarters in Tokyo and operates worldwide. The group has been in aggressive acquisition mode but also reportedly suffered losses in fiscal 2022 due to COVID-19 and natural catastrophes. mbj