The Regulatory Structure
The industry is currently governed by the Insurance Act of 1969, as regulated by the Office of the Registrar of Insurance Companies (ORIC), with a cabinet minister having ultimate responsibility for overseeing the Bahamian industry.
The Office of the Registrar of Insurance Companies has primary responsibility for protecting the interests of policyholders through the supervision of the industry.
In 2001 there were 41 registered insurers in the property and casualty class and 15 in the life and health industry. The number of agents and brokers was 55, of which eight were registered in the general class and 24 were responsible for most local transactions. A total of about 1,000 people are employed in the general insurance sector.
Insurers and intermediaries carrying on insurance business in or from The Bahamas must be registered in accordance with the provisions of the Insurance Act. This law sets out the financial requirements of insurers and levies registration fees. Business license fees for insurers and intermediaries are dealt with under the Business License Act 1980. For insurers this fee is now 3 per cent of gross written premium.
A draft bill to replace the Insurance Act of 1969 is currently under review. The goal is to strengthen the protection given to policyholders by:
- Increasing capital and solvency requirements
- Expanding the regulatory framework
- Establishing a supervisory authority
- Regulating insurance intermediaries
In 2004 the Road Traffic Act of 1958 was amended to limit third party liability in respect of bodily injury to $2.5 million per person, and $30 million for any one event. This amendment was introduced in part because reinsurers refused to provide unlimited protection, and insisted that their exposure be capped.
