A top executive of a regional insurance company has cried shame on the former management of Colonial Life Insurance Company (CLICO) for its collapse.
Chief executive of Beacon Insurance Company Limited, Gerald Hadeed, said he believed that as a result of the CLICO debacle the entire insurance industry had been made to spend millions of dollars putting in better systems to comply with new rules.
Hadeed said his company spent more than $2 million setting up a new system. He believed the insurance industry would now come under greater scrutiny by individuals and companies.
“We are a part of the industry and there are a lot of good companies operating in Barbados and in the Caribbean, but one bad apple can spoil all the good work that we are doing. And I understand only this morning [yesterday] that charges will be laid against [two officials in] Barbados,” Hadeed told the WEEKEND NATION, following the unveiling of a new company logo at the Court Yard by Marriott yesterday.
CL Financial of Trinidad and Tobago, the parent company of CLICO Holdings (Barbados), collapsed in February 2009.
Criminal charges have been filed against former executive chairman of CLICO Holdings (Barbados) Limited Leroy Parris, and current president Terrence Thornhill.
Hadeed said: “Without a doubt, that CLICO debacle has actually cost the insurance companies millions and millions of dollars to put regulatory [system] in place to meet with the new framework [as outlined by the Financial Service Commission (FSC)].
My own internal audit division and our compliance division have cost us $2 million in the last year putting it together.”
He, however, welcomed the new compliance policies and regulations, stating that he thought “it is a good thing that the governments got together and introduced these laws to ensure compliance and the protection of policyholders and their funds”.
Beacon has branches in Barbados, Grenada, St Lucia and Trinidad & Tobago along with agencies in other territories.
“We do have a lot of directors who are looking after the well-being of the company. The jail terms in all of these new regulations are enormous for the directors . . . fortunately, Beacon has been a company that has complied with the governments throughout the Caribbean and we run a clean, clear business,” Hadeed said. (MM)
