Circular Letter to General Insurance Companies and the ATTIC Secretariat

CENTRAL BANK OF TRINIDAD & TOBAGO
Eric Williams Plaza, Independence Square, Port-of-Spain, Trinidad, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 625-4835; 4921; 5028; Fax: (868) 627-4696 E-Mail Address: info@central-bank.org.tt Website: www.central-bank.org.tt

December 20, 2016

CIRCULAR LETTER TO ALL GENERAL INSURANCE COMPANIES AND ATTIC SECRETARIAT

REF: CB-OIFI- 3003/2016

Request for information on reserving made under Section 51(1) of the Insurance Act Chapter 84:01 (“the Act”)

Pursuant to Section 51(1) of the Act, the Inspector requires that all general insurance companies provide complete and accurate Form B4 Schedules for their financial year ending 2016. The format and instructions for completion of the Schedules can be found on the Central Bank’s website at http://www.central-bank.org.tt/content/regulatory-returns-and-instructions-0.

Kindly note the following when completing the requested Form B4 Schedules:

1) All companies writing business outside of Trinidad and Tobago are required to complete separate Form B4 Schedules in respect of their non-Trinidad and Tobago business.

2) Information on non-reinsurance recoveries for the Motor class of insurance business is required to be reported. Non-reinsurance recoveries include salvage, subrogation, excesses and other recoveries from policyholders or other third parties.

3) The company is now required to complete a new sheet named "Methods". The information being requested is self-explanatory.

Completed Form B4 Schedules based on unaudited financials are required by January 31, 2017. In addition, completed Form B4 Schedules based on audited financials must be

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Circular Letter to all General Insurance Companies and Attic Secretariat Request for Information under Section 51(1) of the Insurance Act Chap 84:01 December 20, 2016

submitted (if different) by June 30, 2017 along with explanations and reconciliations of the differences between the two submissions. The aforementioned information must be submitted electronically to kvance@central-bank.org.tt and via hard copy to the undersigned.

The Central Bank of Trinidad and Tobago (“the Central Bank”) takes this opportunity to remind all General Insurance companies that pursuant to Section 172 of the Act:

“(1) Every company shall, in addition to the reserves required to be included pursuant to section 168, provide reserves for meeting outstanding claims.

(2) Every company shall furnish to the Central Bank details of the methods used in calculating the reserves to be provided under subsection (1).

(3) The Central Bank may disallow any method used in calculating the reserves referred to in subsection (2) where it is satisfied that the method does not result in the provision of adequate reserves.”

Yours sincerely,

Signature

Michelle Chong Tai-Bell
Inspector of Financial Institutions
Financial Institutions Services Department