Request for Information on Reserving made under Section 51(1) of the Insurance Act

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 30, 2014

CIRCULAR LETTER TO ALL GENERAL INSURANCE COMPANIES AND ATTIC SECRETARIAT

REF: CB-OIFI-2952/2014

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

The Central Bank of Trinidad and Tobago ("the Central Bank") wishes 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."

Further, 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 2014. 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 Form B4 Schedules as requested:

1) Beginning 2014, all companies writing business outside of Trinidad and Tobago are now required to complete separate Form B4 Schedules in respect of their non-Trinidad and Tobago business only.

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 form policyholders or other third parties.

Completed Form B4 Schedules based on unaudited financials are required by February 6, 2015. In addition, completed Form B4 Schedules based on audited financials must be submitted (if different) by June 30, 2015 along with explanations and reconciliations of the differences between the two submissions.

Yours sincerely,

[Signature]

Michelle Chong Tai-Bell
Chief Actuary
Financial Institutions Services Department