CLICO saviours

DLP forced to rescue policyholders, says Ince

Government is taking on a near $400 million risk associated with the collapsed CLICO International Life insurance, but a senior state official said today it was a must in order to protect the country’s financial sector.

Leading off debate in the Senate this morning on the CLICO International Life Insurance Guarantee Amendment Bill which was passed in the Lower House last night, Parliamentary Secretary in the Ministry of Economic Affairs Senator Jepter Ince said while some questioned Government’s involvement in essentially what was a private sector business failure, the collapse of CLICO’s operations had serious financial implications for the island.  He said too that given the large number of policyholders impacted, it meant Government had to step in.

“We had a social obligation to individuals,” the Government senator said, while noting that the controversial Executive Flexible Premium Annuities (EFPAs) at the time had a book value of $130 million.

“There were challenging times and we also had the real estate that had a value at that time of $65 million. Back then the underwriting risk of Government was $377 million that Government said to the investors in CLICO, ‘we are going to take on this responsibility’.”

Outlining some of the work already done to clean up the CLICO mess, Senator Ince cited the creation of Resolution Life Assurance Company Limited which will look after the administration of CLICO’s assets. He pointed to the creation also of New Life Investments Company.

According to the Parliamentary Secretary it seemed that throughout recent history it was Democratic Labour Party (DLP) administrations which were forced to clean up major private sector financial failings.

“A question may be asked what is the long-term viability, but if we think about the long term economic impact. Sometimes you like to look at numbers, but you cannot always measure your social responsibility in terms of dollars,” he told the Senate.

Calling the amendment before the Upper House the final phase of an era in Barbados, Ince said: “It seems whenever this country is challenged, . . . when these things are upon us, the DLP is in office.

“If we had to reflect on 1994, the DLP, as a result of the collapse of Great Northern Insurance, we put in place rules and regulations to manage the financial sector and coming out of that was the strengthening of the Supervisor of Insurance.

“We came to office and established the Financial Services Commission . . .  and here we are in 2017 with this challenge – we are going to amend the CLICO Bill and this amendment has to do with what we term as bringing the final phases of financial viability.”

5 Responses to CLICO saviours

  1. Ricardo Worrell
    Ricardo Worrell December 6, 2017 at 9:29 pm

    I’m surprised he didn’t say the policy holders loss was a test from God

    Reply
  2. John Everatt December 6, 2017 at 9:47 pm

    So where is Leroy Parris’s part in all this? He has 5 million in stolen money now in the central bank and apparently the judiciary is unable to come up with a judgement. There must have been more crooks who took money from there as well. The government can not afford to come up with 377 million. This is tax payer’s money and we need to fix the sewers on the south coast. Perhaps Leroy’s best friend Fumbles can convince him to give it back to the people he stole it from.

    Reply
  3. hcalndre December 7, 2017 at 4:50 am

    The deceased PM said that Clico was in the good hands of his good friend, ex PM Owen said that Clico should stop selling policies because of some kind of problem and they continued which turned out to be right, in the US Madoff was sentence to 150 years in prison at 71 years of age for running a Ponzi scheme.

    Reply
  4. Sue Donym December 7, 2017 at 7:53 am

    “You cannot always measure your social responsibility in terms of dollars”. Have you told this to your colleagues in health, environment, education, transport and works… oh, wait, did the CLICO situaion hit close to home; did anyone get caught in FRIENDly fire?

    Reply
  5. roger headley December 7, 2017 at 8:47 am

    You all ain’t know that the economy ‘turn the corner’ since May last year. Fret not thyself because of …?

    Reply

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