Press Release - MARCH 13, 2018

Best’s Briefing: Trinidad & Tobago Insurance Regulations Poised to Become Law


CONTACTS:
 Ricardo Longchallon
Senior Financial Analyst
+1 908 439 2200, ext. 5676
ricardo.longchallon@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
(908) 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MARCH 13, 2018
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 some of the components of Insurance Bill 2016 (The Bill) and how it would affect insurers; in particular, a sharp increase in minimum capital requirements for insurers.

The briefing, “Trinidad & Tobago Insurance Regulations Poised to Become Law,” states that under existing law, 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. Some 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 back to earlier than 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.

To access the full copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=271485 .

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.