Cayman downgraded in insurer’s risk assessment

| 19/01/2011

(CNS): The Cayman Islands is one of 19 countries that have been downgraded in an annual review of political and economic risks. Aon Corporation, a leading international provider of risk management services, insurance and reinsurance brokerage, has lowered the country’s rating from a low-risk jurisdiction to medium low-risk in its 2011 Political Risk Map. Cayman was downgraded along with other Caribbean countries and territories, including Antigua & Barbuda, Bahamas, Barbados, Bermuda, Dominica, Grenada, Antilles, St Vincent, Trinidad, St. Lucia and St. Kitts & Nevis “due to tighter global credit conditions which could lead to an increase in sovereign non-payment risk”, Aon said.

Beverley Marsden, associate director of Aon Risk Solutions’ Crisis Management Practice, said, “The perceived or actual risk of sovereign non-payment continues to be an issue in countries across the globe. For example, we have seen 13 island nations move into a higher risk category this year because of the effect of a decline in tourism on their economy.”

Aon’s Political Risk Map ranks countries on a six-point scale, from low risk to very high risk, and although the nineteen countries were downgraded, eleven countries were upgraded.

"Globalization has been blamed for recent incidents of economic volatility, but it has also had a positive impact on global political and economic stability. Many countries previously designated as medium high or high have taken advantage of global trade links and have seen political risk levels decrease,” Marsden added.

Go to Aon’s political map

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  1. tim ridley says:

    Ratings affect the terms on which the Cayman Islands’ Government and private entities can borrow in the international markets. It will be interesting to see whether the Moody’s Aa3 rating will be maintained at the annual review this year. Much will depend on how well the Government’s three year plan is being met.

  2. Anonymous says:

    Am not surprised- with the negative of the civil servant negotiaters and the lazy people who except everything on a platter. These attitudes have dropped our standing in the eyes of the world.

    Any by the way , Britain, which has a responsibility for Cayman, is already putting the squeeze to avoid further erosion of our financial viability.

    Keep on going and just watch the future outcome. Probably a good time for MR Watler to assume Premiarship of this country with a empty bank.


  3. Anonymous says:

    Anywhere else in the world going from low-risk to medium low-risk is a step in the wrong direction.

  4. Shock and Awe says:

    "Globalization has been blamed for recent incidents of economic volatility, but it has also had a positive impact on global political and economic stability."

    Such as?  India? Vietnam? Indonesia for instance?  Let’s be clear, the "impact" has been more opportunities for multi-national corporations to set up manufacturing subsidaries using sweat shop labor.  Including no minimum wages, child labor, underpaid piece work, a brutal clamp on unions, long hours in some cases 18 hr. shifts.  And the total absence of any form of workers’ rights including working conditions. This may be a "positive" outcome for companies taking advantage of "globalization", as they are the only winners but they accomplish this at the expense of millions of working poor.  They also topple democratically elected governments and support repressive regimes to make things "politically stable". While they and the dictators on their payroll take it to the bank.  That is the true face of globalization.

    Globalization is nothing more than a politically correct modern term for slavery.  It has continued to destroy economic self-sufficiency, people’s independence, and the environment in every nation it has invaded.

    It is economic warfare.

    • anon says:

      This is more of a problem for tax neutral jurisdictions like Cayman than the 2000 people Elmer has on his disks.

      This globalization allows huge firms to transfer massive amounts of income around and not pay taxes.

    • Capitalist says:

      Wow.  You sure hate business don’t you?  The question though is whether you feel the same way after you have to pay $300 for flimsy sneakers because the workers who make them want to live and retire in conditions similar to what MacBush has, relying on unions to force businesses to pay obscene wages for uneducated manual labour. 

      Ever wonder why the major car manufactureres in the US (except Ford) keep going bankrupt?  It’s people like you, the unions and folks who think a starter car should cost $100,000 so the unionized workers can get $150 per hour for twisting a wrench.  When the rest of the world laughs at you and builds a good car for a third of the price, you say "Globalization is bad!  Keep out the inexpensive products.", but the consumers don’t want to get fleeced and wil always buy a better car (or whatever the product) from a free economy manufacturing country.

      The world needs low-paid workers to man the shovels.  Don’t whine about that, or better yet go pick up the shovel yourself.

      Oh, and in case you didn’t get the news, the West is finished as a manufacturing economy.  Unless the West reeducates and retools for work it is able and willing to do, it gets to be the next third world.  4 out of 10 of the richest people in IT are in India.  Get used to the competition or get ready to be crushed, but don’t think whining will change a thing. 

      • Shock and Awe says:

        Well, Capitalist: You are so wrong on so many points I don’t know where to begin.

        Do you honestly believe $2.40 U.S. for an eighteen hour day is an honest wage?  For a fourteen year old girl??  So that she can sew GAP clothing for you and yours?  And Disney souvenirs for your kids?  Do you believe that’s bad?  Or unfair in any way?  Wrap your limited vision around this:  It isn’t demand for higher wages- or unions that causes this situation.  It’s the necessity to increase profit margins. At any expense.  Usually in a Third World country because they couldn’t get away with it at home. Those pesky labor laws. The $150 Nikes you wear on your capitalist feet to the gym cost Nike $4.00 to make.  The person who made them earned $1.50.  Where do you think the rest of the money went?  "Globalization" is a wonderful term used to disguise but on the ground it has meant impoverishing half the world so that the other half- your half- can smugly declare "it’s just free enterprise at work." 

        The most idiotic, egocentric statement of all:

        The world needs low paid workers to man the shovels.  Really?  Bye the way you know what you can do with your shovel?  The world is changing.  Look out.  I hope you can feed yourself and sew.

  5. Anonymous says:

    Woo Hoo Thanks MAC now we know what you hve been up to all this time!