The Tribune

The Bahamas Insurance Association’s (BIA) chairman says the industry believes the Government has neglected it, as there are numerous long-standing legal and policy issues it is still battling to resolve.

Emmanuel Komolafe said: “We have a lot of issues. You have the legislative issues. You have issues with the legislation where we expect some changes. The Insurance Act has been around now for quite some time.

“Members of our sector feel that we don’t get the level of attention that we ought to. There is a lot of focus on international financial services, offshore and all of that, but the actual, stable domestic insurance industry receives little attention.”

Mr Komolafe, who addressed the Rotary Club of West Nassau last Friday on National Health Insurance (NHI), added: “Asset liability management is an issue for us. This has been an issue for years. Long-term insurers, life insurers, when they when they insure people they have liability into the future, so when you insure someone at 20 you are hoping that based on the mortality table they live into their 70s.

“We have to support that liability with an asset on our books. We want an assets that are not only fixed, like when the Government issues bonds or securities, but we want it to be fixed and long term. One of the biggest risks that long-term life insurers face in the Bahamas is interest rate risk, the potential volatility. We have been talking about that for ages.”

Mr Komolafe continued: “On the legislative side a number of issues have come up. To a lot of people it may sound simple, but the use of registered mail is an issue. Our legislation requires insurers, when they give a notice, to have it done by registered mail.

“The problem is that sometimes, when people get it, the policy has already lapsed. This is a technological age. We should allow people the option to get their notices by electronic means. It seems simple but it has a major impact on our industry.”

Mr Komolafe told the Rotary Club of East Nassau that based on insurance industry estimates, the Government’s proposed NHI scheme could cost between $895m and $965m to implement.

Sanigest Internacional, the Costa Rican consulting firm, had projected that (NHI) would cost between $362 million on the low end and $633 million if a comprehensive benefits package was offered.

Mr Komolafe said that while the BIA and various stakeholders support the concept of universal health coverage, it must be done right. “If it’s not implemented properly, there could be serious repercussions and consequences for the industry. We could see an industry that we have actually built for years, decades, overnight become a shadow of its old self easily, if it’s not implemented properly,” he added.