Regulatory Alerts2025-03-24 | 34555Added · Updated
Guideline on the Management of Liquidity Risk for Insurers
The Central Bank of Trinidad & Tobago issues this guideline to establish minimum requirements for the liquidity risk management framework of all insurers and financial holding companies. The document mandates the maintenance of a Board-approved liquidity risk appetite statement, robust internal controls, and a portfolio of unencumbered highly liquid assets classified into Level 1, 2A, and 2B categories. It requires regular liquidity gap analysis, stress testing, and the implementation of a formal liquidity contingency plan to address shortfalls during stress events. The guideline serves as the assessment framework for the Central Bank to evaluate the adequacy of an insurer's liquidity under section 82(1)(b) of the Insurance Act, 2018.