BIPA expresses delight at new development

News that an end appears in sight for the policyholders of British American Insurance Company (Barbados) Limited (BAICO) is sitting well with the Barbados Investors and Policyholders Alliance Inc. (BIPA).

BIPA made its position known in a press release issued yesterday, in response to a notice published in the press yesterday on behalf of BAICO and KMPG, the Judicial Manager (JM), that the life and annuity business of BAICO is to be transferred to Sagicor Life Inc. by the end of February next year.

That notice indicated that as December 20, the JM, Sagicor and Government agreed on a “suitable course” which was approved by the High Court of Barbados. It indicated that the revised transfer completion date of February 28, 2018 had been set, and that the payment of claims by the JM and the transfer of policies to Sagicor “will continue on the same terms and conditions outlined in the JM’s initial correspondence to policyholders in January and February 2017”. According to the notice, the revised transfer completion date follows the resolution of concerns about the adequacy of Government of Barbados funding, following a number of downgrades of Government debt by international rating agencies.

BIPA expressing it was “delighted” at the development, said it was looking forward to the agreement being honoured, especially after years of disappointment.

“After eight and a half years of uncertainty and anxiety about their saving and investments, over 10,000 British American policyholders hoped that they would finally see their policies safely transferred to Sagicor on May 31st 2017. However, this did not happen and policyholders had to suffer silence on their fate and that of their policies for a further six months while discussions and negotiations continued between the Judicial Manager, Sagicor and the Government of Barbados,” the statement read.

The policyholders alliance further went on to advise policyholders that the JM will be sending out correspondence in the coming weeks and indicated that any policyholders whose contact details have changed, should contact BAICO as a matter of urgency.

“It is now nine years since the collapse of both CLICO and British American, and policyholders have undergone unimaginable misery as a result of the delays and setbacks in the promised solutions. Let us hope that by the middle of 2018, this entire debacle will finally be consigned to a very dark part of the country’s financial history,” the statement concluded.