Insurance

This section of the website is intended to provide information on various aspects relating to insurance supervision and for use by industry participants in familiarising themselves with the more recent developments regarding supervision and guidance.

The primary function of the Insurance Act is the protection of insurance policyholders. This manifests itself in various forms, covering the operations of insurance companies including financial security of companies and proper management and conduct e.g. requiring timely claims settlements and meeting reasonable expectations. The Act also covers other insurance intermediaries.

Financial security for policyholder protection is reinforced by requirements for companies to hold sufficient assets in trust on behalf of their policyholders and for trustees of these funds to report on a regular basis to the Commissioner. Off-site supervision of companies is done primarily through comprehensive reporting requirements on the company’s business activities.

The principles of good corporate governance are reinforced under the provisions of the Act which also provides the regulator with the power to intervene and if necessary, cause the wind-up of an insurance company for policyholder protection.

Insurance brokers, individual and corporate agents and all forms of insurance intermediaries also fall under the supervision of the Commissioner.

In summary, the Act provides the OCI with a mandate to regulate all forms of insurance participation including on-going financial well-being and market conduct as well as the handling of complaints.