ORANJESTAD--The Aruba news website 24ora.com revealed on Wednesday that an internal investigation has been ongoing at NAGICO Insurances Aruba for some time in connection with possible conflict-of-interest cases, whereby part of management has been cleared.
As part of this investigation, NAGICO Group Chief Executive Officer (CEO) Detlef Hooyboer was suspended by the NAGICO Insurances’ Supervisory Board of Directors on the directive of the Central Bank of Curaçao and St. Maarten (CBCS), The Daily Herald reported on November 24.
It became clear during a court case of one of the managers in Aruba that there was an intensive working relationship with a specific broker, Aruba Insurance Broker. This happened after the company changed ownership and Hooyboer became CEO early 2019.
At least five clients have indicated that their insurance was transferred to the broker in question, without their knowledge or consent. After this discovery, the person who turned out to be responsible for this was immediately dismissed. This dismissal was approved by the court.
According to 24ora.com, NAGICO Aruba, which is now headed by interim director Ryan Kock, is trying to tie the actions of the dismissed employee to the suspended CEO. The court was informed during the dismissal case that the company had lost hundreds of thousands of florins due to the actions of the involved employee with possible involvement of the then-CEO.
Now-suspended CEO Hooyboer said during the court case that he did not know of the actions by the employee concerned, even though the employee maintained otherwise. NAGICO immediately decided to suspend Hooyboer and to appoint Kock as director of NAGICO Aruba, who reports to the Central Bank of Aruba.
24ora.com reported that it looks like the internal investigation is also being carried out on other islands where NAGICO operates to see whether the practice of transferring business to a particular broker is taking place there as well. The investigation is expected to result in various court cases and legal debates to arrive at the truth.
NAGICO was founded in St. Maarten in 1982. The company expanded and serviced 20 markets. NAGICO grew further due to the acquisition of British American Insurance Company. NAGICO Aruba was established in 2004 and grew rapidly, partly due to its popular Road Service product.