Equity Insurance, the local company that had its operations seized by the Financial Services Commission (FSC) over several FSC Act breaches and compliance issues, is seeking to allay its clients’ fears.
In a published statement, Equity told its policyholders and stakeholders that “all existing policies remain valid and in force” despite the action taken against it by the regulator.
Furthermore, the company stated that “claims and customer service will continue without interruption”, as it acknowledged the FSC’s concerns that the company needed to strengthen its governance and internal systems.
Equity said it was already taking “corrective measures” and was committed to “meeting the highest standards of regulatory compliance and corporate governance”. It sought to calm client fears about the future of the general insurance provider by insisting that its “foremost priority is [its] policyholders”, insisting that the company would process all claims and all policies were “secure”.
At least one law firm says it hopes the statement from Equity would provide some “comfort” to concerned clients following the enforcement action taken by the FSC.
In a post on its social media page, Versus Legal revealed that many of its clients contacted the law firm expressing concern about the status of personal accident matters, and if they would be impacted by the FSC decision to appoint a restructuring expert to manage Equity Insurance.
“Our approach throughout this period was to quietly and diligently acquire answers. We, too, at Versus Legal were just as concerned as you were.
“We have now attained official response from Equity Insurance Company Ltd, which we hope will find comfort and add clarity to the ongoing situation and how this unfortunate circumstance impacts you,” the law firm stated in a social media post. The firm said, based on the statement from Equity, “it appears your claims will not be affected. . . . In the interim, we trust this situation is quickly resolved and business can proceed for the company involved.”
On August 18, the FSC took enforcement action against Equity, seizing control of its operations over unresolved breaches of the FSC Act, the Insurance Act, Cap 10, as well as regulatory guidelines and international best practices.
On July 14, the FSC had issued a formal notice (Notice No. LSED 2025/01) expressing its intention to assume management and control of Equity Insurance. The company was given until August 4, 2025, to submit written objections and demonstrate why enforcement should not proceed.
Equity responded with a Letter of Objection and an independent assessment conducted by Compass Advisory Services Inc. However, following a review, the FSC concluded: “Equity Insurance Company Ltd has not sufficiently remediated its serious breaches of the Financial Services Commission Act, 2010-21, the Insurance Act, Cap. 310, Guidelines and established international best practices.”
To restore confidence and operational integrity at Equity Insurance, the FSC appointed Craig Waterman, who has assumed full control of Equity Insurance Company Ltd until further notice.
(IMC)
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