The Caribbean insurance regulatory landscape is shaped by a network of national authorities, regional associations, and evolving legislation. Life insurers in the region are subject to a mix of local laws, international standards, and collaborative oversight. Here’s an overview tailored for actuaries and professionals interested in the regulatory frameworks and trends affecting Caribbean life insurers.

Key Regional Regulatory Bodies

Caribbean Association of Insurance Regulators (CAIR):

• Unites 22 regulatory authorities from the Caribbean and Bermuda.

• Promotes high and consistent regulatory standards.

• Works closely with the International Association of Insurance Supervisors (IAIS).

• Supports regional collaboration, training, and dialogue between regulators and industry.

International Association of Insurance Supervisors (IAIS):

• Develops global insurance supervision standards.

• Many Caribbean regulators are members, ensuring alignment with international best practices.

Caribbean Association of Pensions Supervisors (CAPS):

• Regional coordinating body for pension regulators and supervisors across the Caribbean.

• Founded in 2010 through collaboration among Caribbean regulators, Caribbean Regional Technical Assistance Centre (CARTAC), and international partners.

• Membership includes 20 countries, covering all CARICOM states and several overseas territories.

• Mission: Promote effective, harmonised pension supervision and regulation in the Caribbean.

• CAPS provides a platform for sharing expertise, addressing regulatory challenges, and coordinating reforms.

Country-Specific Regulatory Highlights

• Barbados

  • Regulator: Financial Services Commission (FSC)

  • Core Legislation: Insurance Act, Cap. 310

  • Key Requirements: Licensing, minimum capital, solvency, annual audits, and risk-based supervision. The FSC engages with industry stakeholders and is a member of CAIR and IAIS.

  • Recent Trends:

    • Enhanced AML/CFT compliance and consumer protection oversight.

    • Membership in CAIR, IAIS, and GIICS to align with international standards.

• Jamaica

  • Regulator: Financial Services Commission

  • Legislation: Life Insurance Act (2001), with requirements for capital adequacy, investment of domestic liabilities, and reporting.

  • Solvency:

    • Life insurers: 150% MCCSR (Minimum Continuing Capital and Surplus Requirement).

    • General insurers: 250% MCT (Minimum Capital Test)

  • Recent Trends: Moving toward risk-based capital and stronger supervisory independence.

• Trinidad & Tobago

  • Regulator: Central Bank of Trinidad and Tobago

  • Key Legislation: Insurance (Amendment) Act, 2020

  • Key Points: Risk-based capital, enhanced financial condition reporting, Caribbean Policy Premium Methodology (CPPM).

Common Regulatory Themes & Trends

• Minimum Capital & Solvency: Most countries require life insurers to maintain minimum capital and solvency margins, with a trend toward risk-based capital.

• Investment Restrictions: Significant portions of assets must often be invested domestically, with prescribed asset classes.

• Reporting & Supervision: Annual audits, actuarial valuations, and periodic financial returns are standard.

• AML/CFT Compliance: Increasing focus on anti-money laundering and counter-financing of terrorism.

• Digital Transformation: New guidelines for digital insurance, data protection, and cyber risk.

Regional Collaboration & Modernisation

• Harmonisation Efforts: CAIR and CARTAC support harmonised standards, training, and modernisation.

• Ongoing Reforms: Many jurisdictions are updating laws to improve supervision, capital adequacy, and enforcement.