Nassau, The Bahamas – International insurance products could play a key role in the Bahamas’ financial services industry, the 22nd annual Caribbean Actuarial Association (CAA) conference was told.
Financial Services and Investments Minister L. Ryan Pinder saw it as “a significant contributor to The Bahamas going forward.”
“It is time that we as a dominant international financial services centre, develop insurance products and promote the sector as a significant component of our financial services industry,” he said.
Mr Pinder, a certified tax attorney, was the keynote speaker at the three-day conference which opened Thursday at the Sheraton Nassau Beach Hotel.
Headed by Neil Dingwall of Trinidad, the CAA was formed in Jamaica in 1991 to create an actuarial body whose primary focus would be issues of concern to the region. It is a member of the International Actuarial Association. Lisa Wayde of Barbados is the president-elect. Marcus Bosland of The Bahamas is a board member.
International insurance products, he noted, has historically been a lesser sector of the Bahamas’ comprehensive financial services centre.
But jurisdictions such as Bermuda, he pointed out, have embraced insurance as a dominant part of their industry.
Mr Pinder argued that the focus of The Bahamas’ financial services industry should be on Latin America, from a geographic point of view.
“The Bahamas is the gateway to the Americas,” he said. “We are a dominant financial services centre in the same time zone as many of the Latin American countries, and who have invested real capital in elevating the profile of the jurisdiction.
“The private sector in many areas in financial services is already adjusting their business models o be consistent with this policy – to create hubs here in The Bahamas to access Latin America.
“And if one would carefully look at the Latin American market for financial services, insurance products must play an important role in our development of the market as a country.”
Recognising that financial services is now a global business, he said, there are Latin American countries that are facilitating legislation to permit international insurance products to be purchased by their citizens
“If we grasp this opportunity in international insurance products, identifying and integrating products into new markets that we pursue as part of a comprehensive financial services strategy, the industry has nothing but growth in its future,” said Mr Pinder.
As The Bahamas is not the only financial services centre in the region to identify this opportunity, he said, the Government will need the cooperation of the private sector to further define offerings.
“Gone are the days when a single niche can support a country’s financial services centre,” said Mr Pinder. “We now need to be all inclusive – a viable market for all parts and products in the industry.”
The future of financial centres, especially in this region, he said, is in their ability to offer comprehensive and all encompassing product lines to international clients.
“Insurance is looking for new frontiers for international financial centres who are looking to expand their industry,” said Mr Pinder. “The Bahamas must not only keep pace with this but we must get ahead of these developments and ensure that as we expand our industry as we develop new geographic markets, we ensure that insurance offerings are key components of that offering.”
He pledged his commitment to work with industry stakeholders “to ensure that the future is bright, one of growth.”
By Gladstone Thurston
Bahamas Information Services
