Best’s Briefing: New Trinidad & Tobago Insurance Regulation Finally Poised to Become Law

By a News Reporter-Staff News Editor at Insurance Weekly News -- After many years, legislation that would update insurance regulation in Trinidad & Tobago appears to be on its way to becoming law. A new Best's Briefing looks at the components of Insurance Bill 2016 and how it would affect insurers; in particular, a sharp increase in minimum capital that insurers would be required to hold.

The briefing, "New Trinidad & Tobago Insurance Regulation: Finally Poised to Become Law," states that under existing legislation, insurance companies carrying on long-term insurance business (life insurers) are required to have share capital of TTD3 million, and companies writing short-term insurance business (general insurers) are required to have capital of TTD1 million. The new minimum stated capital for all companies under the bill would be raised to TTD15 million. Furthermore, companies will be required to maintain a minimum regulatory capital ratio of 150%. However, the bill does provide for a five-year transition period for existing insurance companies to attain the required guidelines. Other key elements of the proposed guidelines include the strengthening of internal controls, risk and capital management and corporate governance.

Legislative efforts to update insurance regulation in Trinidad & Tobago stretch as far back as 2011. The bill, which was recently passed in the House of Representatives, is now headed to the Senate for debate and likely approval before becoming law.

Keywords for this news article include: A.M. Best.

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