Central Bank deals with errant insurance companies

Speaking at an anti-money laundering seminar at the Arthur Lok Jack Graduate Business School in Mt Hope, the governor said the FSO has handled 190 complaints against insurance companies.

According to Williams, "As we investigated these complaints, it is very clear that there are a few insurance companies that are having difficulties in meeting legitimate claims."

Out of the 190 complaints, Williams said only 144 fell within the FSO’s jurisdiction. He added that out of the 28 companies under the scheme, five companies accounted for 95 out of the 144 complaints or two-thirds of the complaints.

The governor said the Central Bank has started working with the management of these companies "to address areas of weakness and non-compliance." He added that fixing the weaknesses depends in large measure to the willingness of managers and owners to cooperate and take corrective actions "to make their companies safe and sound for their policyholders."

Williams said Govern-ment’s efforts to reform TT’s financial sector is significantly well advanced at this time and legislation to amend the Financial Institutions Act (FIA) should be brought to Parliament by December 31. He indicated that one of the more important FIA amendments would give the Central Bank the authority to impose civil money penalties "as an immediate enforcement tool and alternative to prosecuting through the court system, for breaching certain sections of the Act."

The governor said while it would appear that this country is playing catch-up in the area of financial sector reform, this is a phenomenon which exists in most of the Caribbean and most developing and emerging markets.

Williams also said the bank is working closely with the Finance Ministry on its pension reform initiative and collaborating with law enforcement agencies to combat money laundering and terrorist financing.