As the financial woes in various Clico operations across the region continue, the Cayman Islands Monetary Authority (CIMA) yesterday said that it has ordered Clico (Cayman) to cease issuing new policies with investment components until the Authority grants permission to resume.
The order was issued last Tuesday. CIMA yesterday issued a Public Notice outlining actions it has taken with regard to Colonial Life Insurance Company (Trinidad) Limited, trading as Clico (Cayman) Ltd.
In a statement, CIMA said that on Tuesday it issued a “cease and desist order” to Clico, pursuant to section 12 of the Insurance Law (2008 Revision). Under the Order, the Authority has directed the company to “immediately cease or refrain from issuing new policies with investment features until the asset level in its trust fund has been increased to the required level and approval is granted by the Authority for the Company to resume such activity” and “cease or refrain from receiving any new premiums on existing policies with investment features until approval is granted by the Authority to resume such activity.”
The statement said that CIMA has also required Clico to “take certain actions within a prescribed time frame and imposed additional reporting requirements on the Company to better monitor its business activities and financial condition”.
On January 30 it was announced that CL Financial, the parent company of Clico had asked for and was granted a bail-out package by the Trinidad Government. Subsequently, other Clico operations across the region, in Guyana, Barbados and The Bahamas had reported financial woes too and locally Clico (Guyana) has been placed under the control of the Court.