Government Suspends Payments to Former CLICO EFPA Policyholders
The decision by the government of Barbados to default on the the New Life Investment Preservation Bond should not have come as a surprise to those with a finger on the pulse of current affairs. Prime Minister Mia Mottley indicated on winning the government that with the country in debt 15 billion dollars with a GDP of 171%- third highest in the world- a priority of her administration is to restructure/reprofile the debt. The country was given notice that in government’s Phase I and II economic program to be rolled out in the coming weeks government guarantee of all bond issues will be on the table for review.
The decision to suspend payment to former CLICO Executive Flexible Premium Annuity (EFPA) policyholders will be a blow after the matter was ensnared in litigation for almost a decade. Many of the policyholders are retirees – those not dead – and the investment in the EFPA represents savings to support living in the golden years. The blogmaster will make bold to suggest there was political interference in the process. The symbiotic relationship between the DLP and CLICO brands loom large.
The BU intelligentsia recently engaged in a sidebar conversation – an example of a comment, with Actuary Walter Blackman where the the viability of New Life Investment Company (NLICO)– the parent company of New Life Investment Company- was questioned if there is no premium income. The conclusion is that to maintain payment of pension and other financial commitments this is just another state owned company that will be sucking the very sore nipples.
To discuss insurance related matters the role of the newly minted Board of the Financial Services Commission (FSC) to be chaired by Avinash Persaud must play an important role. Barbados Underground posted in 2017 on a report that dropped off the back of a truck prepared by the IMF which reviewed the robustness of the operations of the Financial Services Commission (FSC)- specifically as it pertains to the supervision of Sagicor.
A report prepared by the International Monetary Fund (IMF) that reviewed the robustness of the operations of the Financial Services Commission (FSC)- specifically as it pertains to the supervision of Sagicor- has triggered alarm bells in the local and regional financial market. Although there is no evidence based on any public reporting Sagicor is not a well run company, the
The blogmaster over the years can measure the efficiency and culture of most organizations by the relevance and ‘vibrancy’ of its website. A review of the Financial Services Commission (FSC) shows there is an opportunity to improve content management. Have a view of the Management Team Page, the Manager Insurance position is vacant? Surely not! Have a look of Resolution Life Assurance page, the decision to suspend annuity payments is still to be updated to the News & Updates page.
How difficult is it to update a page? Some will suggest the blogmaster is being captious.
In all seriousness.
What the last decade of DLP government has taught us is that a fractious contentious climate is not conducive to moving the country forward. It does not matter if the policy prescriptions of the former government were correct, if the leadership – both political and NGO – is unable to persuade the majority of the population to get on board, to borrow from the lexicon of the street people, the dog dead. We can continue down the path of the last lost decade or we can dig deep, suppress politically partisan and uneducated position for the good of country.
The country is broke.