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Bank of Guyana Issues Guidelines for Insurance Business

Georgetown, Guyana - The Bank of Guyana has taken a significant step to strengthen the insurance industry in the country by issuing guidelines for the domestic and international insurance business.

Enhancing Supervision and Protection

The guidelines are aimed at enhancing the supervisory powers and responsibilities of the Bank, promoting competition in the insurance industry, and protecting consumers. According to the Bank’s Governor, the new regulations will provide a consolidated legal framework for the prudential supervision of insurers and satisfy various policy objectives.

“The Insurance Act 2016 is a major milestone in our efforts to strengthen the financial system and protect consumers,” said the Governor. “The new law provides a risk-based approach to supervision, promotes competition, and enhances the regulatory framework.”

New Responsibilities

Under the new act, the Bank will have greater powers to supervise insurers and ensure that they operate in a safe and sound manner. The Bank will also be responsible for overseeing the solvency of insurance companies and protecting policyholders.

Replacing Existing Laws

The Insurance Act 2016 replaces the Insurance Act of 1998 and the Insurance (Supplementary Provisions) Act 2009, which had given the Bank powers to supervise the insurance industry. The new law also repeals and replaces the Insurance Act of 1998, which had been in place for over two decades.

Credit Reporting Guidelines

In addition to the Insurance Act 2016, the Bank has also issued guidelines for the credit reporting business. The Credit Reporting Act was enacted in 2009 and places the responsibility for oversight and supervision of credit reporting on the Bank.

Key Provisions

  • Credit information providers must share credit information with the credit bureau and obtain prior written consent from consumers before submitting requests to the credit bureau.
  • The act addresses the rights and protection of consumers, including the requirement that entities considered public sources, such as utility companies, share credit data or credit information which is publicly available.

Other Guidelines

The Bank has also issued guidelines for the Deposit Insurance Act 2018 and the National Payments System Act 2018.

Deposit Insurance Corporation

  • The corporation will be responsible for managing the Deposit Insurance Fund and other related purposes.
  • The Governor of the Bank will serve as Chairman of the Board.

National Payments System Act

  • The act creates a sound legal framework for the operation and oversight of the payments system in Guyana.
  • The act defines the ambit of the “payments system” and articulates, in detail, the role and functions of the Bank in regulation and oversight of the payments system.

Conclusion

In conclusion, the Bank of Guyana’s guidelines for insurance business, credit reporting, deposit insurance, and national payments system are aimed at enhancing the financial sector and protecting consumers. These regulations will provide a solid foundation for the growth and development of the financial sector in Guyana.