The Tribune

Bahamas Insurance Association (BIA) executives have met with Michael Halkitis, minister of state for finance, and his officials to discuss key industry concerns.

The BIA group at the May 8 meeting included Howard Knowles, chairman; Emmanuel Komolafe, deputy chairman, Cardinal McCardy, treasurer; Peter Muscroft, former chairman; and Dr. Rhonda Chipman-Johnson, BIA co-ordinator. Accompanying the Minister were John Rolle, financial secretary, and Roger Turnquest, assistant economist.

The meeting discussed outstanding issues that have impacted the insurance industry for many years. They included challenges faced by long-term (life and health) insurers in the implementation of robust asset/liability frameworks and their resultant sensitivity to interest rate risk.

There was extensive deliberation on the impediments to comprehensive investment risk management programmes within the industry, plus the obstacles to proper diversification of insurers’ investment portfolios created by the exchange control regime.

The BIA also raised several matters requiring legislative attention by the Government, including the corporate governance provisions regarding the Insurance Commission of the Bahamas; the service of notices through alternative, electronic methods; the Condition of Average; rebating; restrictions on salespersons representing multiple insurance entities; certain corporate governance requirements in the regulations; and the existing limit on credit for reinsurance.

Ministry of Finance officials committed to working with the Commission to address these systemic issues, plus as make the requisite revisions to the legislation and accompanying regulations by the end of 2014.