This section also captures recent press releases and letters from the print media and links to older releases relating to the OCI and the industry that may be of interest. Please note that we are generally only able to include articles from the print media that have information available on a website.

News

The Insurance Arbitration Board - 30.05.2006
This article is written with the intention of informing readers of the existence and function of the Insurance Arbitration Board or the IAB. Unfortunately this entity is not well known. Unfortunate because it serves an extremely useful purpose – it is an affordable and efficient method of resolving disputes between policyholders and insurance companies or brokers.

Click here to read more

The Scope of Marine Insurance
This article provides a broad appreciation of the major aspects of marine insurance and is structured by briefly outlining the history of marine insurance development, then proceeding to touch on the various types of coverage available, the perils covered and the typical losses that occur under both classes of cover.

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May 25 2006 - Press Release - Pensions Seminar held on 23 May 2006

On 23 May 2006 the Office of the Commissioner of Insurance (“the OCI”) held a pensions seminar targeting pension plan managers, trustees and sponsors. This was the third seminar hosted by the OCI for pension managers, and its main objective was to assist managers and trustees in compliance with the Insurance Act 1998 (“the Act”), particularly with complying with filing requirements for registration of pension plans.

The Act commenced on 18 December 2003 and required managers to apply for registration of existing and new pension plans. The OCI received so far 106 applications, but only 9 pension plans have been registered to date. The other 97 plans are not registered because of outstanding filing requirements, some of which have been outstanding for over two years and are yet to be met. These filing requirements, just to name a few, are trust deeds, rules, actuarial reports/certificates, audited financial statements and insurance contracts for insured plans.

The OCI has a mandate to ensure compliance with the Insurance Act 1998 and as part of this role to offer guidance for prudent management of pension plans. Guidelines on the winding-up of pension plans, to managers and to trustees were made available.

The topics presented were to create an awareness of the importance of the filing requirements, and to educate stakeholders that play a role in managing pension plans. Representatives from the sponsoring employers, trustees and managers of all 106 plans were invited.

Presentations by OCI staff, Deloitte & Touche, the Guyana Revenue Authority and Caribbean Actuarial and Financial Services covered topics such as the Robert Maxwell pension scandal in the UK in the early 1990’s, the necessity of supervision, the benefits of saving in a pension plan, the responsibilities of trustees, guidance on the preparation of accounts for the purposes of complying with the Act and with International Accounting Standards, tax and actuarial matters.

The Commissioner urged those plans that are not registered to get their act together in order to avoid costly enforcement procedures. She concluded the seminar by emphasising that a pension plan is one of the better ways of saving due to the significant tax benefits and on average the benefits outweigh the costs. Failure of private savings for retirement will result in greater reliance on the NIS (and as a result increased contributions to the NIS)

Persons can check its website: www.insurance.gov.gy. for general information of the functions of the OCI and its mandate in ensuring compliance with the Insurance Act 1998.

Office of the Commissioner of Insurance, Ministry of Finance

Mar 21 2006 - GuyFlag Insurance Scam

Frederick Sukhdeo, who was arrested last year November in connection with the GuyFlag $400M insurance scam, yesterday appeared in the Georgetown Magistrate's Court on two charges.

www.stabroeknews.com/index.pl/article?id=48638025

Oct 07 2005 - GuyFlag's assets claim under probe

The matter is now being investigated by the Office of the Commissioner of Insurance as it could violate Section 123 of the Insurance Industry Act , which states that providing material misleading or tending to mislead the public is an offence.

www.stabroeknews.com/index.pl/article?id=32149932

 

Oct 06 2005 - Church insurance scam. GuyFlag told to stop issuing policies -Jagdeo urges police to get involved.

The Commissioner of Insurance Maria van Beek has ordered GuyFlag to stop issuing insurance policies on the ground that it is not satisfied by its application.

www.stabroeknews.com/index.pl/article?id=32041766

 

Sept 30 2005 - Insurance Commissioner not satisfied with GUYFLAG's explanations

Commissioner of Insurance Maria van Beek says she is not satisfied with the explanations given by Guyflag over its role in a $400M insurance fraud related to the Scared Heart fire.

www.stabroeknews.com/index.pl/article?id=31460291

 

Sept 28 2005 - GUYFLAG Given Deadline to Clarify Church Policy Scam

Commissioner of Insurance, Maria van Beek has met with top officials of GuyFlag on the attempted $400M fraud related to a bogus claim for the Sacred Heart church fire.

www.stabroeknews.com/index.pl/article?id=31255057

 

Sept 25 2005 - Tough Laws in place for Insurance Fraud

The Commissioner of Insurance has several options now facing her in how to handle the $400M Sacred Heart attempted fraud involving Guyflag.

www.stabroeknews.com/index.pl/article?id=30952660

 

Sept 24 2005 - Police Probing $400M Church Insurance Scam

... [the OCI's] mandate [is] to "protect policyholders and we are doing the utmost to ensure that is done."

www.stabroeknews.com/index.pl/article?id=30876848

 

Sept 23 2005 - $400M Cathedral Insurance Scam Uncovered

A $400M (US$2M) insurance scam has been uncovered involving an attempted claim for the Sacred Heart cathedral which was destroyed by fire Christmas Day last year. Commissioner of Insurance Maria van Beek declined to say anything on the matter when approached by Stabroek Business yesterday except that “the matter is under full investigation and action is anticipated shortly.”

www.stabroeknews.com/index.pl/article?id=30813340

 

July 8 2005 - Launch of Insurance.gov.gy

A facility for the insurance industry in Guyana and the general public - Press Release

Mar 18 2005 - Insurance Rates - Are Increases Necessary?

www.stabroeknews.com/index.pl/article?id=14138919

 

Mar 07 2005 - Higher rates inevitable - Insurance Association - calls for action on fire service

“Faced with at least 600 claims, the Insurance Association of Guyana yesterday warned that increased premiums are inevitable in the wake of the flood catastrophe and it appealed to the government to tackle weaknesses in the fire service as paid-out claims have topped $3B over the last five years…”

www.stabroeknews.com/index.pl/article?id=13098477

 

Feb 5 2005 - Only two insurance companies registered so far

Of the 18 insurance companies that have applied to become registered with the Office of the Commissioner of Insurance (OCI) only two applications have been approved. Three others were rejected and the balance may look to wrap up the process this year.

www.stabroeknews.com/index.pl/article?id=12131563

 

Dec 18 2004 - The main function of the Commissioner of Insurance is to protect policyholders

Dear Editor,

I write in response to a letter published in the Chronicle on 15th December 2004 entitled "Insurance company in trouble?" signed by 'Concerned Shareholder' and enquiring about my role as Commissioner of Insurance.

It is unusual to hear from shareholders of insurance companies as they are often few in number and many of the major shareholders are not individuals but companies. I assume that the writer is not confused about whether he or she is a shareholder or a policyholder (these have different rights in different insurance companies) and have responded as such.

The first question is "What is the role of the Commissioner of Insurance of Guyana?" As Commissioner of Insurance I am responsible for the general administration of the Insurance Act 1998 and am therefore the main regulatory body of insurance companies, pension plans and insurance intermediaries such as insurance brokers, agents, etc. Anyone wishing a more detailed understanding of what this entails is encouraged to purchase a copy of the Insurance Act 1998 from the appropriate Parliamentary Office.

At the time of writing I believe the cost is $350 per copy. Persons are also welcome to contact my office for more information, especially if they have specific questions.

The primary purpose of my office is the protection of policyholders and as such I am very interested in the financial affairs of insurance companies. I would hope to be aware of all the significant and relevant problems of all companies - that is one of the most important roles I play on behalf of policyholders.

For all companies, the board of directors is responsible to the shareholders of the company. That is why shareholders have the power to replace the board of directors if they are dissatisfied. For public companies (companies that have more than 50 shareholders) the Guyana Securities Council is the regulator in charge of oversight of these organizations and their requirements lead to enhanced shareholder information. For non-public companies, in this case all the proprietary insurance companies (most of which have very few shareholders), there is no external organization that specifically looks after shareholder interests. That is a risk shareholders accept when they put their money in these organizations. Ultimately if you are dissatisfied, you can always sell your shares. Finally the independent auditor looking at the financial statements of the company has an important role to play and should highlight any areas of concern in their report. All shareholders should be supplied with a copy of the company's audited financial statements.

Shareholders, and in the case of a mutual, policyholders, have the power to greatly influence who the directors of the company are, and I encourage the letter writer to exercise his or her rights. If you are concerned then surely there are other concerned shareholders and the Annual General Meeting is an appropriate place to voice your concerns. I would also encourage any worried shareholder or policyholder to write to the Board of Directors outlining their concerns. If you wish to send a copy of your letter to my office, I can certainly attend to the issues raised but I stress again that my role is one that focuses on policyholders, although sometimes the interests of the two groups (shareholders and policyholders) coincide. In the case of a mutual, policyholders often have similar rights as shareholders but this depends on the mutual and its by-laws. The company should provide clarification if you are unsure of your status.

I trust this response has assisted the shareholder and helps to explain what my office is responsible for and what it is not.

As a shareholder, you have rights and you should certainly exercise your right to receive answers on the financial affairs of your company from the board of directors and your right to do with your shares as you see fit. No one else can do that for you.

Yours faithfully,

Maria van Beek
Commissioner of Insurance
(Guyana)

www.stabroeknews.com/index.pl/article?id=8671017

Sep 10 2004 - Companies called on to register pension plans

Of the 104 companies with pension plans less than 10% meet the requirements for registration, and stakeholders were encouraged at a seminar yesterday to abide by the requirements governing these funds.

www.stabroeknews.com/index.pl/article?id=8663883

 

Aug 13 2004 - Insurance sector faces new compliance requirements

www.stabroeknews.com/index.pl/article?id=8661944