The Financial Services Commission (FSC) has seized management and control of Equity Insurance Co. Ltd, following what the regulator says are “serious breaches” in its operations.
Recent examinations concluded that the insurer’s internal systems, controls and governance needed significant strengthening, the FSC announced.
In an enforcement action it said was intended to safeguard policyholders of Equity Insurance and preserve stability across the insurance market, the FSC announced the appointment of highly-experienced restructuring professional Craig Waterman, of PriceWaterhouseCoopers SRL, as the insurance company’s manager effective yesterday “until further notice”.
The Commission noted that his role is to oversee day-to-day operations, work closely with Equity’s staff and guide the company through the next phase of enhanced supervision.
It also said that subject to the manager’s reports, the Commission will make its final determination as to whether to revoke Equity Insurance’s licence within 90 days of Waterman’s appointment.
“Our first responsibility is to protect policyholders while maintaining public confidence in the financial sector,” FSC chief executive officer Warrick Ward said in a statement.
“Equity has been given, and will continue to have, every opportunity to present its case and demonstrate why licence revocation should not be required. This process will be transparent, fair and focused on achieving the best possible outcome for the public.”
Ward added: “The Barbadian insurance sector remains strong, well-regulated and resilient. While we prefer to work collaboratively with licensees to resolve issues, the Commission will always act decisively when consumer protection and market stability are at stake.”
Based at Briarfield, Lower Collymore Rock, St Michael, Equity Insurance has been in operation since 1995, offering residential, motor, commercial and marine insurance coverage.
Representation in writing
Efforts to get a response from the management team responsible for Equity Insurance before Waterman’s appointment were unsuccessful.
On August 13, an FSC notice attributed to Ward stated that on July 14, the Commission issued
a notice advising Equity Insurance of its intention to seize management and control of it and to appoint a manager pursuant to the Financial Services Commission Act, 2010-21.
“The said notice . . . advised Equity Insurance Co. Ltd of its right to make representation in writing to the Commission by or before August 4, 2025, demonstrating just cause why the Commission should not take the relevant enforcement action,” the FSC stated.
A second notice also issued on July 14 advised Equity of the FSC’s intention to revoke its licence “pursuant to Section 25 of the Financial Services Commission Act, should the company not demonstrate adequate remediation”.
“Equity Insurance Co Ltd submitted a letter of objection dated August 4, 2025, as well as a supporting independent assessment conducted by Compass Advisory Services Inc.”
The FSC said it carefully considered the submissions and determined that Equity “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.
“The Commission remains convinced that Equity . . . does not maintain a high standard of financial probity, does not follow sound business practices and is unable to adequately remedy the breaches without independent, external professional intervention,” it stated.
“The Commission has consequently decided to proceed with the seizure of management and control . . . , the appointment of a manager and the taking of any other necessary action for the purpose of protecting the interests of customers, creditors and the public.”
The FSC said in its press statement that all of Equity Insurance’s existing policies remain valid and in force; renewal of policies remain at the company’s and policyholders’ discretion; and claims processing and customer service will continue under Waterman’s oversight.
It also said that while policyholders and intermediaries may continue to conduct business as usual, “there will be no new business written during this time of enhanced supervision”.
(SC)
The post Insurers seized after ‘regulators find serious breaches in operations’ appeared first on nationnews.com.