THE LOCAL GENERAL INSURANCE sector is on the radar of the Financial Services Commission (FSC) as those companies face one of the longest periods of flat performance.
And the latest Financial Stability Report by the Central Bank and the FSC highlighted a number of challenges facing insurance companies.
FSC chief executive officer Randy Graham said in a recent interview that the regulatory body was taking action to protect the sector and address credit and other risks.
“The key vulnerabilities identified surrounded the depressed net income position recorded, particularly in the general insurance sector, the reduced levels of investment income, and the relatively low capital levels, leading to the heavy use of reinsurance as risk diversification.” (GE)
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