The Cayman Islands Monetary Authority (CIMA) issued a cease and desist order to British American Insurance Company Limited (BAICO) on Monday, 29 June.

The order prohibits BAICO from issuing any new insurance policies of any kind.

The order also significantly expands BAICO’s reporting requirements, a CIMA press release said.

“Also, it further directs BAICO to maintain all assets in the Cayman Islands to ensure the satisfactory coverage of all policy holder liabilities of BAICO and prohibits the company from transferring any of its assets and funds to any affiliated company without the Authority’s prior written approval,” the press release explained.

The order states that BAICO is to “maintain at all times an adequate asset level in its Trust as required by section 7(1) of the [Insurance] Law.”

Section 7(1) of the law requires an insurer carrying on domestic business to place and maintain on trust sufficient funds to meets its policyholder liabilities as determined by an actuary.

A Public Notice issued on the matter by CIMA explains that:

“The Authority has issued this cease and desist order to safeguard the public interest and to protect the Company’s policyholders while the Authority continues its examination of BAICO’s affairs.”

The notice also advised that CIMA requires BAICO to submit “specific information on its policies namely health insurance, policies with investment features, life insurance, pension and annuity, property, personal accident and any other policies in its remit. “

The notice further advises that CIMA expects BAICO “to continue to honour its obligations to its policyholders; the ongoing examination of the Company by the Authority does not preclude the Company from honouring these obligations”.

The CIMA notice also pointed out “the situation with BAICO is an ongoing matter and, as such, the Authority is restricted in its ability to provide any additional details on the matter to the public at this time. CIMA will provide further updates to the public as and when it is in a position to do so.”

“The Authority at all times endeavours to promote and enhance market confidence, consumer protection and the reputation of the Islands through its regulatory functions and recognises the need for transparency and fairness,” the CIMA notice said.

While the cease & desist order prohibits BAICO from taking on any new insurance policies including health insurance, it does not preclude the additions of dependents on existing individual health policies (family cover) or new additions of employees on existing group health policies;

The CIMA notice said policyholders who have specific questions regarding their policies should contact BAICO.

Policyholders should contact the CIMA Insurance Division “if they have concerns about their policies or other matters and if these concerns are not being addressed by BAICO in a timely manner,” the notice said.

The CIMA Insurance Division can be reached by email at insurance@cimoney.com.ky, by phone at (345) 244-1663 or by fax at (345) 946-5611.

BAICO was registered as a Foreign Company with the Registrar of Companies on 15 October 1964. BAICO was licensed as an approved external insurer under section 4 of the Insurance Law, 1979 on 10 June 1981. The Company is also an Approved Insurer under the Health Insurance Law. In addition, the Company also recently received approval from the Cayman Islands National Pensions Office to offer a registered pension plan.

BAICO’s main shareholder is CL Financial Limited, a company incorporated in Trinidad and Tobago.