CLICO stops writing policies; 700 agents idle

Colonial Life Insurance Company (Trinidad) Ltd (CLICO) has told its 700 insurance agents to stop writing new policies until the company develops a new business model and revises its rates.

It's the latest development in the crisis facing the CL group headed by Lawrence Duprey since the Trinidad and Tobago Central Bank took control of CLICO this, following liquidity problems at CLICO, CLICO Investment Bank and British American Insurance Company Ltd.

The insurance company has about 70 agencies spread across the country. Managers are meeting with their sales representatives Tuesday to discuss a new business model and new rates for CLICO’s products.

Last week the managers met with the new CLICO board appointed by the Central bank.

One manager confirmed the freeze to the Trinidad Guardian. “We are not allowed to see new clients. We can only service old clients. We can’t write new business or do any overseas stuff,” she said.

The Port of Spain-based agent told the paper CLICO is no longer marketing its annuities in foreign currencies—the US dollar, the euro, the Canadian dollar and the United Kingdom pound sterling—which was offered to citizens of Trinidad and Tobago living abroad.

For now CLICO is only handling transactions in local currency.

E-mail correspondence exchanged among senior personnel advises agents to reassure clients that it is safe to do business with CLICO's insurance subsidiaries.

The Guardian quoted from one dated February 3 from Willard P Harris, managing director/chief executive officer, administration team, Colfire: “We wish to advise that Colfire has an independent board of directors with a separate balance sheet and we can confirm that we have met and exceeded our statutory requirements with the Central Bank of T&T (CBTT).

“All reinsurance arrangements have been placed and are secure with reinsurers, all rated Standard & Poor’s ‘A’ and above. We continue to have the support of our reinsurers in light of the circumstances.

“Your company is strong and unaffected. No member of staff will lose their job as a result of the announced restructuring by the CBTT of our fellow subsidiaries.”