The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMAS Insurance Association chairman Emmanuel Komolafe has stressed that it is “imperative” that the existing regulatory frameworks for the healthcare and insurance industries are leveraged so as to avoid overlapping responsibilities with the proposed National Health Insurance Authority (NHIA).

In a recent statement Mr Komolafe noted that the insurance industry is currently regulated by the Insurance Commission of The Bahamas (ICB), whose main responsibility is to ensure the safety and soundness of the insurance industry - which by extension applies to licensees of the regulator.

“There are a number of requirements within the Insurance Act (Ch. 347) and accompanying regulations that are designed to ensure that insurance companies and intermediaries adhere to the highest standards which are consistent with international best practices,” said Mr Komolafe. He noted that among the important standards within the current insurance legislative and regulatory framework are provisions relating to corporate governance, capital adequacy and management, solvency, risk management, financial reporting, disclosure requirements, complaints management and overall market conduct.

“The NHI Draft Bill Stakeholder Feedback document posted on the nhibahamas website notes that consultation with the ICB is ongoing to presumably clearly define the role of the ICB following the implementation of NHI. Additionally, the roles of and interaction with regulatory bodies such as the Medical Council, Pharmacy Council and Nursing Council just to mention a few in the administration of NHI should be clearly articulated. It is possible that these details will be contained in the accompanying regulations; however, we are unable to ascertain this due to the absence of the regulations at this time,” said Mr Komolafe.

He added: “It is imperative that the existing regulatory frameworks for the healthcare and insurance industries are leveraged and we avoid overlapping responsibilities with the proposed NHI Authority. This concern is highlighted by provisions of the draft NHI Bill in sections 6(d) (Functions of Authority), 25(2) (Eligibility) and 30 (Duty to submit reports). Duplication of regulatory requirements including reporting, information request and prudential norms will only increase the cost of compliance as well as the regulatory burden for industry participants.”

Mr Komolafe said that the potential impact on the ease of doing business is also worth considering in ensuring that there is proper communication, co-ordination and collaboration between the relevant regulators and the NHIA with due regard for confidentiality and data protection insofar as the delivery and administration of NHI is concerned. He noted that the government’s NHI consultant, KPMG, had expressed similar concerns on the regulatory structure of the NHI scheme with emphasis on the need for clearly defined roles and responsibilities for the ICB and NHIA.