The Financial Services Commission (FSC) moved on Wednesday to have Equity Insurance Company Limited wound up by the High Court, arguing that the insurer’s financial position has deteriorated and poses a growing risk to policyholders and the wider market.
The court had earlier sanctioned the revocation of the licence, allowing the FSC to seize management and control after it claimed multiple breaches of the laws governing insurance firms.
Since then, the regulator has taken further enforcement action by asking the court to approve its latest application to liquidate the company following new developments in its financial position that “substantially” increased its risk profile.
“Developments include significant additional risk factors in Equity’s financial position, and a resulting disruption to the company’s reinsurance arrangements, compounding a history of statutory non-compliance,” FSC Chief Executive Officer Warrick Ward said.
“In light of the several opportunities already afforded to Equity to remediate its deficiencies, the commission has carefully considered the available options for an orderly resolution of this general insurance company that would be consistent with our mandate of protecting the interests of policyholders and ensuring stability of the financial market. We have concluded that a court-supervised liquidation provides the best option.”
But Equity has accused the regulator of breaching natural justice in its treatment of the company’s situation.
The company contended that it had committed itself to remediating the complaints outlined by an assessment report of its operations and was in the process of taking corrective action but was not allowed to complete that process.
The case was adjourned until March 25.
The post FSC seeks court order to liquidate troubled insurer appeared first on Barbados Today.