Insurance

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Under the Insurance Act (2008), the FCS licenses insurance domestic and non-domestic
companies as well as insurance service providers (Insurance Broker, Insurance
Agent (company /individual),Insurance Sub-Agents , Insurance Managers and
Professional Insurance Representatives to conduct insurance business
activities.

The
FCS’s Insurance Act (2008), Regulations and Codes are aligned with the International Association of Insurance
Supervisors (IAIS)
 standards
and principles and focuses on specific regulatory issues relating to capital
adequacy, solvency, corporate governance, early warning systems and the
protection of policyholders.

The
insurance industry plays a vital role in the economic development of the
Grenada. As well as underwriting insurance products, the local insurance
companies have also diversified their investment portfolios by venturing into
other business sectors such as real estate. Besides the insurers, there are
also the licensed brokers and registered agents and sub-agents that makes up
the players within the insurance industry.

Since the enactment of the Act and the subsequent
economic crisis from the period 2008 to 2012; there has been a positive
increase in the market values of the insurers. The FCS as regulator continues
to expand significant efforts on financial stability and prudential matters
with respect to the insurers, brokers and other intermediaries of the insurance
industry.

From 2012 to 2017, there has been a steady increase in the number of intermediaries within the insurance industry. The growth pattern thus clearly shows that the sector is one that is highly dynamic in nature and presents itself as a good environment for doing business. This has spearheaded the insurance industry as one which has grown to be more dynamic and current with the developments of the rest of the world. However, there is still a long way to go in breaking down many more barriers such as affordability and accessibility of new insurance products and services and thus bringing more innovation to the industry.

As of February 2019; the statistics of licensees is as per below:

Insurance (Policy
Owner’s Protection Fund) Regulations, 2009

The Policy
Owner’s Protection Fund (“POPF”) is a statutory fund established pursuant to
Section 88 of the Insurance Act, 2008 (“The Act”). Further to Section 88 of the
Act, the POPF was created to protect victims of road traffic accidents and to
provide a safety net for policyholders and claimants of insolvent insurance
companies by providing statutory compensation to policyholders and claimants of
such insolvent companies. 

Section 89 deems
it mandatory for all licensed insurance companies in Grenada to contribute
one percent of their gross premium income at the end of the financial year to
the POPF. The funds of the POPF consists of the proceeds of the general
business levies paid into the Fund under section 89(2) of the Insurance Act,
2008.

The POPF is
governed by a committee (“POPF Committee”) which is currently made up of seven
members. Each member is appointed triennially at the discretion of the Minister
responsible for Finance. The committee is tasked to advise the Authority on all
matters relating to the POPF as set out in the relevant sections of the Act and
any such matters as may be referred to the Committee by the Authority.