Opposition Leader Ralph Thorne has reiterated the importance of insurance companies maintaining a high level of solvency, sufficient to meet its obligations to policy-holders.
Speaking on the Insurance Amendment Bill, 2025, piloted in the House of Assembly yesterday by Minister in the Ministry of Finance Ryan Straughn, in which changes and adjustments to the existing legislation have been proposed, Thorne conceded such amendments to the existing insurance laws were necessary to protect the interest of Barbadians.
He also supported the strengthening of the Financial Services Commission, Government’s regulatory body with oversight for the operation of insurance companies.
However, he suggested Government should ensure protection for the principal of the commission, since he argued that people could be exposed to civil liability if it were established in a lawsuit that they failed to properly monitor operations of an insurance company to ensure the company maintained an adequate statutory fund.
The amendments to the legislation extend to external insurers carrying on business in Barbados, binding them to all the regulations which fall within the purview of the Financial Services Commission.
With regard to insolvency, the amended bill states “an insurer carrying on insurance business of insuring the risk located outside of Barbados and in respect of which premiums originate outside of Barbados shall comply with all requirements determined by the commission”.
He noted the amendments carried no stated figures in relation to the level of capital liquidity and assets in accordance with the requirements determined
by the commission, and contended this placed “a very heavy responsibility on the commission”.
He suggested the commission could “possibly” be exposed to legal action being taken for the “improper exercise of a discretion” or “negligent supervision”.
Meanwhile, in what Speaker Arthur Holder suggested was perhaps a digression from the specific debate before the House, Thorne also raised questions about the East Coast road building project being executed by the Chinese, calling on Government to take the project out of “the shroud of secrecy and tell Barbadians the real cost”.
Interrupted by the Speaker on the relevance of that aspect of his contribution to the debate, Thorne said he was responding to earlier remarks made by Straughn about Democratic Labour Party spending and borrowing during its regime.
Thorne repeated Straughn’s words and told the Speaker: “That is what the Honourable Member said and in keeping with the Standing Orders, I reserve my right to offer a direct response to that statement.
“In relation to that statement, I respond to the Honourable Member and say to him that the debt incurred in response to those road works is costing Barbadians today . . . . Not only are the loans today costing Barbadians, but they will cost Barbadians tomorrow.” (GC)
