BusinessGrenada.com BusinessGrenada2019-2020 Issue 8 | Page 46

INSURANCE Whereas the Banking act is standard throughout the Eastern Caribbean, the Insurance act is not. However, one common and harmonised insurance act throughout the Eastern Caribbean is in the process of being implemented and Grenada is poised to be amoungst the first country states to administer the new regional insurance act. Overall, the new Act strengthens the supervisory and regulatory powers of GARFIN as the Supervisor of Insurance. Flexible Annuity Programs and other high risk investment practices that depart from the proven safe principles of insurance business’s was the cause of CLICO & British American Insurance going bankrupt. Due to their downfall, this practice has now been banned by regulators to ensure this situation never happens again. Corporate Governance was also lacking so insurance companies have sensitized authorities for the need for more regulations which will ultimately benefit policy holders. According to a survey conducted by AGIC (Association of Grenada Insurance Companies) 46 46 its member companies received a total of 5348 claims as a direct result of Hurricanes Ivan and Emily which affected Grenada on the 7th Sept. 2004 and 13th July 2005 respectively. The survey reveals that of the 5348 claims a total of 5324 claimants have received settlement totaling EC$ 406,062,384.00 Company Limited • Island Heritage Insurance Company Limited • Lloyds Underwriters • Netherlands Insurance Company (WI) Ltd • Massy United Insuarance Company Ltd • NAGICO Insuarance (Grenada Ltd) • Sun General Insurance Inc. “ Whereas the Banking act is standard throughout the Eastern Caribbean, the Insurance act is not. However, one common and harmonised insurance act throughout the Eastern Caribbean is in the process of being implemented “ G renada now has a modern insurance legislative framework in keeping with international standards and best practices. The insurance act of 2010 came into effect in March 2010 and increases the capital and solvency requirements for insurance companies and makes provision for the establishment of statutory funds to protect policyholders liabilities. It also imposes penalties on companies and their officers for non-compliance and brings insurance agents, brokers and adjusters under greater supervision. Grenada did see a 30% increase in property insurance rates after hurricane Ivan but in recent years has seen some softening of rates. Presently, typical property insurance rates hover around EC$ 6.50-$8 per $1,000 of coverage. GENERAL INSURANCE COMPANIES IN GRENADA • American Home Assurance Company Ltd • Antillean General Insurance Company Ltd • Beacon Insurance Company Ltd • Caribbean Alliance Insurance Company Ltd • Eastern Caribbean Insurance Limited • Grenadian General Insurance Company Ltd • Guardian General Insurance Limited • Gulf Insurance Limited • Guyana & Trinidad Mutual Fire Insurance www.businessgrenada.com www.businessgrenada.com LIFE INSURANCE COMPANIES IN GRENADA • Antillean Life Insurance Company Ltd • Beacon Insurance Company Limited • British American Insurance Company Limited • Clico International Life Insurance Limited • CUNA Caribbean Insurance OECS Ltd • Demerara Mutual Life Assurance Society Ltd • Guardian Life (OECS) Ltd • Guyana & Trinidad Mutual Life Insurance Co Ltd • Pan American Life Ins Co. of the Eastern Caribbean Ltd • Sagicor Life Inc • Scotia Insurance Eastern Caribbean Ltd BG