Regulatory Alerts2017-08-25 | 29556Added · Updated
Request for Information Under Sections 51(1) and 172 of the Insurance Act on Adequate Reserving
The Central Bank of Trinidad and Tobago requires all general insurance companies to submit completed Form B4 Schedules to verify compliance with Section 172 of the Insurance Act regarding adequate reserving for outstanding claims. Companies must provide schedules for the last three financial year ends by August 30, 2013, although those previously reviewed for years 2011 and prior are only required to submit schedules for the 2012 financial year end.
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
August 5, 2013
CIRCULAR LETTER TO ALL GENERAL INSURANCE COMPANIES AND ATTIC SECRETARIAT
REF: CB-OIFI-2219/2013
Dear Sir/Madam
Request for information under Sections 51(1) of the Insurance Act Chapter 84:01 (Act) on adequate reserving required by Section 172 of 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.”
In accordance with Section 51(1) of the Act, the Inspector requires that all general insurance companies provide completed and accurate Form B4 Schedules. This is necessary for the Central Bank to determine whether there is adequate reserving as required by Section 172.
For those general insurers that have not already done so, Form B4 Schedules for at least the last three financial year ends are required by August 30, 2013. However, if you previously submitted Form B4 Schedules for financial year ends 2011 and prior and these were reviewed by the Central Bank, you are only required to complete Schedules for the financial year end 2012. These Schedules should be prepared according to the instructions issued by the Central Bank which can be found using the following link: http://www.central-bank.org.tt/content/regulatory-returns-and-instructions-0.
Yours sincerely
[Signature]
Carl Hiralal Inspector of Financial Institutions