Insurance

**Hon. Allyson Maynard-Gibson, M.P.** Minister of Financial Services and Investments, the Hon. Allyson Maynard-Gibson, says *“the story of the Registrar of Insurance Companies is exciting”.* Developments include the passage of the Domestic Insurance Act, and the realistic proposition that the External Insurance Act and the Regulations under both Acts will all be tabled before the end of the year. The new legislation, said Minister Maynard-Gibson, will provide the framework of reforms needed for the local insurance industry to position itself for “a more globalised, liberalised, and competitive future.” **Captives** The Bahamas International Insurance Association (BIIA) acknowledges that substantial progress has been made on reforming the External Insurance Act. According to President Hywel Jones, members of the BIIA believe the legislation – identified by the Minister of Financial Services and Investments as a legislative priority this year – can help re-establish The Bahamas as a niche market for captive insurance. The revised Act, and new regulations, should provide the legislative framework to allow this jurisdiction to become competitive in the sector. Coupled with this, says Mr. Jones, will be the development of expertise in both the public and private sectors to ensure the administrative structure is in place. Industry practitioners currently are providing feedback on the draft regulations. Estimates are that the captive insurance business can generate significant fees for the Registrar of Insurance, with spin-off benefits in the areas of tourism, professional services and banking. According to CICA, the Captive Insurance Companies Association, currently there are some 5,230 captives operating around the world, with over 55% of these domiciled in the Non-US Western Hemisphere. Total assets represent more than $250 billion, with collective premium volume exceeding $50 billion annually.

**Richard Adderley, IIB President** The Insurance Institute of the Bahamas (IIB) has a new Executive Council, appointed for the year 2005-2006. President Richard Adderley welcomes the following Officers and Council members, also elected at the recent AGM: • Vice President: Bruce Ferguson, Professional Insurance Consultants • Secretary: Charles Sands, Summit Insurance • Treasurer: Stanford Charlton, NUCA Insurance Council Members: Nadine Bain, Colina Insurance Gilbert Williams, British American Insurance Andre Sheppard, J.S. Johnson & Co. David Klean, Insurance Consultant During the upcoming year, IIB will focus on customer service and productivity while developing programmes to meet its three primary objectives of (i) promoting the professional status of the insurance industry; (ii) promoting, encouraging and organising training and education in all aspects of insurance at all levels; and (iii) collecting and disseminating educational news and information that is of interest to insurance practitioners and students.

The Hon. Allyson Maynard-Gibson, Minister of Financial Services and Investments, presented remarks at the LOMA CARIBBEAN CONFERENCE being held June 27-29 at the Atlantis Resort, Paradise Island – under the theme: *Expanding Your Horizons: Staying Ahead of the Competition.* This annual conference, cosponsored with LIMRA, is focussing on industry management and marketing issues for the Caribbean region. Addressing the insurance executives on the first day of sessions, the Minister pointed to the many reasons for The Bahamas’ success in Financial Services – since the 1960s – including: . the commitment by successive administrations to a tax neutral platform; . a commitment to personal privacy, coupled with a strong anti money laundering regime; . a strong anti terrorist financing stance; . a modern legal framework based on the common law; . ready access to Bahamian and international talent; . good communications; and . excellent and strong public/private sector collaboration and cooperation. *”The Bahamas commitment to compete with top financial centres and thereby to ensure the quality of our centre has been demonstrated by our commitment to strong response to market demands, and a strong regulatory and supervisory infrastructure,”* said Minister Maynard-Gibson. **Industry Growth** The combined effect of new industry legislation places The Bahamas at the cutting edge of the financial services sector, and according to the Minister this is essential if The Bahamas is to retain its significant comparative advantage in the private wealth management sector. *”This legislation not only updates the general legislative and supervisory environment but introduces a new style of collective investment vehicle and other business tools, such as the Purpose Trust and Foundations which will enhance The Bahamas’ ability to attract new types of businesses.”* Acknowledging the financial services sector as a means by which quality of life can be improved for the Bahamian people, as well as the significant changes to the world of financial services in 2000, the Government recognises the need to diversify the financial services platform although strong focus remains on private wealth management. *”We have already announced our commitment to grow our Investment Funds sector and our Insurance Sector (domestic and external). In this way, The Bahamas will be seen as a full complement centre for financial services.”* **Insurance Sector** Conference participants were told that the 83 insurance related entities licensed to operate in The Bahamas have approximately $697 Million in assets on their balance sheets and over 3,000 employees. Of particular importance to the insurance sector will be the passage and enactment of the Segregated Accounts Companies Bill, the new Domestic Insurance Act (now in its final stages) and the new External Insurance and Pensions Acts. The latter, she said, will set up the framework of reforms needed for the local insurance industry to position itself for “a more globalised, liberalised, and competitive future.” Additionally, the Office of the Registrar of Insurance Companies has indicated to the industry its intention of working with the industry to raise standards of corporate governance, internal controls, and professionalism. Specifically, the Office has (a) taken steps to move from a prescriptive, one-size-fits-all rules-based inspection approach to a risk-based supervisory approach that places a higher level of management accountability on the industry; and (b) identified a need for an industry-wide code of practice and compulsory minimum training and competency framework. The Minister concluded, *”As you can see, the financial sector in The Bahamas is poised for growth. It is a hot spot because of the strong legislation, the entrenched political stability based on our long history of democracy, well established and understood judicial system, proximity to the world’s largest market and most importantly, because of our people.”* Founded in 1924, **LOMA** is an international association through which more than 1,250 insurance and financial services companies from over 70 countries engage in research. Its educational offerings include the FLMI, FFSI, PCS, ACS, AIAA, AIRC, AIAF, AAPA, ARA programs. **LIMRA** International provides research, consulting, and other services to its members — nearly 850 insurance and financial services companies in more than 60 countries.

A new industry association has been established *”to promote The Bahamas as an international insurance jurisdiction”*. The Bahamas International Insurance Association (BIIA) held its inaugural meeting last month, adopting eight “objects”: 1. To provide a framework whereby the insurance community of The Bahamas can speak with a unified voice on issues of concern to all its members; 2. To provide a forum for the exchange of ideas and provide technical expertise and consulting assistance to all its members; 3. To liaise with the Government / Supervisor of Insurance and/or any association or body on matters affecting the insurance industry; 4. To encourage professionalism and ethical conduct of the members and to develop a code of conduct; 5. To provide a unified approach to problems affecting the Association’s members; 6. To promote a better understanding of the role of the insurance industry within The Bahamas; 7. To promote education and training in insurance; and 8. To promote the insurance industry of The Bahamas internationally. Last year on the occasion of opening a BFSB-sponsored international insurance forum, the Hon. Allyson Maynard Gibson said that although practitioners had labeled the existing External Insurance Act of The Bahamas as user friendly and progressive, *”To stay on the cutting edge, plans are underway for review of the External Insurance Act to ensure ongoing relevance to the needs of a rapidly developing market.”* Dr. Roger G. Brown, Registrar of Insurance Companies, also presented welcoming remarks for the forum and spoke to the importance given to the financial services industry by the new Government of The Bahamas. At that time, Dr. Brown also noted *”We believe The Bahamas can become, again, the premier domicile in the region for Captive Insurance business. We are restructuring and retooling, and will start very soon to reclaim our position at the top.”* The Minister of Financial Services and Investments promised significant expansion of the Office of the Registrar of Insurance Companies and, generally, improvement of the efficiency and effectiveness of the insurance regulatory framework. Draft legislation for amendments to both the Domestic and External Insurance Acts is receiving wide consultation with industry and, already, the technical staff component of the registrar has been expanded to nine professionals. Additionally, enhancements have made to the research and data collection/publication capacity of the Office of the Registrar. On BIIA, Minister Maynard-Gibson has said that the Government looks forward with great anticipation to the opportunity to have yet another financial services group involved in the consultative approach that has become the hallmark of the administration. She said, *”Historically we have proven that we can be a player in the international arena, and the Government will do whatever is necessary to maintain this position. We will keep The Bahamas on the competitive edge in terms of products and services offered, while ensuring the integrity of our financial services system.”* She has pledged to partner with BIIA, indicating *”We want your recommendations – as practitioners – on how to move this industry forward, and on what we need to do to “add more value” to the services we can provide.”* The President of the new insurance association is Mr. Hywel Jones, with David Richardson serving as Treasurer, and Guilden Gilbert as Secretary. BIIA evolved from an international insurance sub committee of BFSB’s Insurance Working Group.

October is Insurance Month in The Bahamas, and the Planning Committee has organised a series of activities under the general theme “Insurance…Embracing Global Challenges”. During the annual “Insurance Month in The Bahamas”, the professional insurance associations of The Bahamas come together to profile the industry. These include the Bahamas Association of Life & Health Insurers (BALHI), Bahamas General Insurance Association, (BGIA); Bahamas Life & Health Insurance Managers Association, (BLHMA); Life Underwriters Association of The Bahamas, (LUABh); Bahamas Insurance Brokers Association (BIBA), and the Insurance Institute of The Bahamas (IIB). The National Insurance Board, (NIB), Registrar of Insurance Companies, (ROIC); and the Bahamas Financial Service Board (BFSB) work in collaboration with the industry associations on the annual promotion. An integral part of this year’s Insurance Month’s educational outreach is a half-day Seminar scheduled for October 3rd at the British Colonial Hilton Hotel. The Hon. Leslie Miller, M.P., Minister of Trade and Industry will present the keynote address, on the topic “The Implications of FTAA On The Domestic Insurance Industry”. The Seminar has been especially designed for insurance sales/marketing representatives, financial consultants, investment officers, compliance officers, and administrative personnel. Leonard N. Henderson, J.D., C.L.U. will present on “Selling in a Changing Environment”, and there will be group “think tanks” addressing the critical issues resulting from merger/acquisition, distribution systems, regulations, and competing products and services in insurance market segments. For further details and registration information, contact Michaela Theophilus, Chairman Insurance Month Planning Committee, at Tel: 393-1023; or Julie Dean, Insurance Seminar Co-ordinator at Tel: 393-0230. Photo shows Mrs. Theophilus and Mrs. Dean at an early planning meeting for Thursday’s event.

The Bahamas Insurance Brokers Association (BIBA) has been formed, to give independent life and health insurance brokers a voice in the market – and, specifically, enable them to provide input into the pending Insurance Industry Act. BIBA will provide these professionals with appropriate representation, focusing on their particular needs, according to officials of the new group. See Associations listing on www.bfsb-bahamas.com for a complete listing of industry professional associations.

The insurance industry is celebrating October as *”Insurance Month”* in The Bahamas, with sponsoring agencies covering all relevant professional industry associations. This includes the Bahamas Association of Life & Health Insurers (BALHI), Bahamas General Insurance Association (BGIA), Bahamas Life & Health Insurance Managers Association (BLHIMA), Insurance Institute of The Bahamas (IIB), and the Life Underwriters Association of the Bahamas (LUAB). Also supporting the promotion and serving on the Planning Committee are the Office of the Registrar of Insurance Companies (ROIC), the National Insurance Board (NIB), and the Bahamas Financial Services Board (BFSB). Working under the theme *”Covering The Bahamas in the 21st Century”*, the Insurance Month Planning Committee has developed a number of activities, all focusing on the primary objective of promoting the industry through public awareness and education. These events include an Insurance School Outreach/Careers Day for senior level secondary and tertiary level students (October 3rd), a Community Outreach programme for special donations to Unity House, Persis Rodgers Home for the Aged, the Disabled Centre and the Deaf Centre (October 5, 11, 19 & 26) and a gala Insurance Month Banquet at the Sheraton Grand Hotel (October 27). To recognise persons who have succeeded in achieving excellence in their career development and training as insurance professionals, an Insurance Industry Achievement Award programme has been developed, with the top three nominees receiving special recognition at the Banquet. There will be a Courtesy Call on the Governor-General on October 4 and a Church Service at the Grace Community Church, Palmetto Village on October 8. Industry professionals will be participating in a series of radio and television talk shows during the month of October, with a similar outreach to service clubs, promoting both the activities of Insurance Month and discussing topical issues impacting the industry.

The Institute for International Research (IIR) will host an International Life Insurance and Annuity Products Conference on November 15 – 16, 2001 at the British Colonial Hilton in Nassau, Bahamas. During the two-day forum, top industry experts will address participants on key regulatory changes and up to the minute product development and marketing initiatives. Presentations will cover life insurance and annuity products which are geared towards servicing the wealth preservation needs of the global high net worth client, and the precautions necessary in order to continue building such product platforms. Also on the agenda will be how the business interactions of offshore insurers have been affected by various international developments relating to money laundering and due diligence procedures. A pre-conference workshop on “Integrating Domestic and International Private Placement Life Insurance into High Net Worth Planning” will present the nuts and bolts of how and why major institutions are entering the private placement arena. This special workshop also will include building strategic alliances and executing a successful marketing plan for international life and annuity products. The Conference is expected to attract industry-wide senior management, particularly those with responsibility for new product development and marketing, offshore annuity and life distribution, investment management for offshore structures, international estate and trust planning, wealth management services, offshore life and annuity compliance and legal issues. Further details on the Conference Agenda and registration details can be accessed from IIR’s www site or by contacting Amy Rubenstein, Marketing Manager at arubenstein@iirusa.com.

The insurance sector in The Bahamas contributes strongly to the nation’s economic expansion, and is ranked as the third largest industry here. The Bahamas Association of Life & Health Insurers (BALHI) points out that Bahamian insurance policies account for “millions of dollars”, while the Bahamas General Insurance Association (BGIA) estimates that insurance on buildings alone (corporate, govrnment and private homes) is somewhere around $8 million. According to industry sources, the insurance sector has been bolstered recently by an influx of professionals from other sectors — including banking and accountancy.