Central Bank of Trinidad and Tobago applies to appoint a liquidator for British American Insurance Company Trinidad

The Central Bank of Trinidad and Tobago published FAQs on its application to appoint a liquidator for British American Insurance Company Trinidad Limited (BAT), telling policyholders that no immediate action is required and that they should continue paying premiums in line with their contracts. Active policies remain in force, including annuities in payment, and benefits are expected to continue to be paid in the normal way. The Central Bank said BAT is insolvent because, while it has adequate assets set aside to meet policyholder payments and benefits, it does not have the assets to repay its other debts. It cited the Insurance Act 2018 as requiring the Central Bank to act where a registered insurer is insolvent and noted that BAT has been unable to secure funding to repay its debt and become solvent, making liquidation the next course of action subject to court approval. Claims and beneficiary entitlements will continue to be processed by BAT as normal, and any policy transfer to another insurer would be communicated to policyholders with an opportunity to raise questions. Upon appointment, the liquidator will assume control of the company and provide updates, while operations will continue as is until that time. The duration and nature of the liquidation will be determined by the liquidator under the supervision of the High Court, with the Central Bank monitoring the liquidator’s activities and able to advise the Court of any concerns, while the Court retains final authority.