By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The National Insurance Board’s (NIB) chairman allegedly attempted to fire its in-house actuary without consulting management or the Board of Directors, a move that ran counter to advice from the world’s leading social security body.
Algernon Cargill, NIB’s directors, in Supreme Court documents detailing the ‘power struggle’ between himself and Gregory Moss, alleged that the chairman wrote to him on August 27, 2012, and requested that Derek Osborne be given 90 days notice that his contract was to be terminated.
Actuaries are vital to any life insurance-based company and social security system, since they provide the risk modelling and calculations that determine their solvency, liabilities and reserves they will have to set aside for future payments to beneficiaries.
Mr Cargill, in his August 30, 2012, response to Mr Moss, detailed “several business and practical reasons” why Mr Osborne’s NIB contract should not be terminated.
And the International Social Security Association (ISSA), in a paper written and sent at Mr Cargill’s request, said it was important that NIB “even improves” its internal actuarial capacity, stating that the Bahamas to-date had been “an exemplary case”.
Setting out the reasons why Mr Osborne should be retained, Mr Cargill said he was acting as a mentor to two young Bahamian actuaries as they progressed through the 10-year qualification process.
Amanda Darville was mid-way through her exams, while Adriel Hepburn was in the first year of qualifying, and Mr Cargill said: “I am not advocating that Mr Osborne should remain with NIB until these Bahamians qualify as trained actuaries.
“However, Ms Darville particularly is at a very critical stage in her qualification and does not presently have the skill sets and/or experience to replace Mr Osborne at this time.’
Mr Cargill also cited Mr Osborne’s 20-year experience at NIB, the fact he had led many reforms, and his leadership of NIB’s 2006-2011 actuarial review that had yet to be completed.
The NIB director alleged that he subsequently spoke with Shane Gibson, minister of labour and immigration, who said Mr Moss’s instructions “should not be carried out and, further, should not even be considered unless NIB had a replacement actuary in place”.
The ISSA paper, sent at Mr Cargill’s request, said it had seen improvements in actuarial reviews and monitoring in both the Bahamas and the Caribbean since social security schemes were started in the 1950s and 1960s.
“We also believe that there have been significant advances in both the Bahamas and the wider region,” the ISSA wrote. “The Bahamas has been an exemplary case.”
It added that NIB’s current actuarial valuation approach was in line with international best practices, and that it was important to publish regular actuarial reports for “better transparency and governance”.
“We believe that it is important for the reasons exposed above that the NIB maintains and even improves internal actuarial capacities,” the ISSA wrote.
Comments
proudloudandfnm 12 years ago
Man the further this goes the worst Moss looks and the more ignorant. Mr. Prime Minister your country needs you to be strong. Fire Moss immediately, reinstate Mr. Cargill so NIB can remain as strong as Mr. Cargill has made it. Why is your appointed chairman meddling at NIB? Why is this man that has no relative experience ordering firings and checks to be written? What exactly is going on in your government?
mikeT 10 years, 6 months ago
When it comes to insurance companies, either the private ones or the NIB, they all seen to have but one purpose: to get as much as they can from anyone! doesn't matter if they are right or wrong... For those of you who have had to pay or didn't receive the money you were suppose to, take a look http://socialsecuritydisabilityappeals.…">over at this website and you'll surely find the answer! I know I did!
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