THE?Barbados Investors Policyholders Alliance (BIPA) supports the call for a forensic audit of operations at CLICO?and the restructuring plan that involves the transfer of traditional insurance business at full value into another insurance company.
BIPA?chairman June Fowler made the comment yesterday in response to proposals by judicial manager Deloitte Consulting which has submitted a restructuring plan for CLICO?that was filed in the High Court Tuesday.
Fowler said option one was the most favourable as “in option one, everyone wins”.
“It is now up to the governments of the region to put that cash injection in and make option one happen.
“In option one, a new company would be set up where assets and liabilities matching will be transferred. So transfer of the traditional business will be at full value into this new company.
Fowler said there were benefits for dozens of policyholders who are now in limbo.
“Naturally, people will not be able to go into the new company as soon as it opens its doors and make a transaction, because if you do that, we are back to square one. It’s not going to be that simple.
“One must give the new entity [a] chance to build the brand, build credit and build the confidence of the policyholders again, so that those persons who had stopped contributing to their pensions will restart,” she said.
Fowler praised the judicial manager.
“The judicial manager has promised us that we will have further consultations. This is good news. I like the fact that we are getting communciations and we are feeling that we are part of the process,” she said.
Fowler said a forensic audit was a must as not only policyholders but the entire Caribbean had the right to know what went wrong. (MK)
