Five firms are vying for the medical insurance portfolio of Resolution Life Insurance Company Limited (ResLife), and by June one of them is to be chosen.
With the impending closure of the ResLife operation, the company recently advertised for expressions of interest in its medical portfolio.
Companies were given to April 24, 2019 to indicate an interest and ResLife is expected to complete the selection process in May.
“This will lead to an offer of new coverage for these health insurance policyholders in June 2019,” the company’s Chief Executive Officer Cheryl Senhouse said in a statement issued in response to queries from Barbados TODAY.
The process is designed to provide stability and continued protection for ResLife’s health insurance policyholders who have maintained their coverage with the state-owned insurer, the statement added.
Without naming them, Senhouse pointed out that ResLife received expressions of interest from five insurance companies, adding that the company’s objective is to “ensure policyholders are treated fairly and not suffer a lapse in their health coverage”.
The statement added: “Pursuant to the shareholder mandate of March 20, 2019, that ResLife liquidates and dissolves its operations and protects the interest of policyholders, Reslife now seeks expressions of interest.”
ResLife’s chairman Tony Hoyos told Barbados TODAY that before management could put forward a recommendation to the board due diligence had to be conducted.
“However, that transfer of the medical portfolio is something that we want to conclude as quickly as we can so that people’s medical insurance doesn’t lapse. But at the same time, you have to do a fair amount of due diligence,” he said.
The main shareholder of the insurance company, which was incorporated in 2015, is New Life Investment Company Inc., owned by the Government.
Since the announcement of the planned liquidation of ResLife and the wrap-up of its operations a month ago by the Prime Minister, policyholders have been informed by the company that it had ceased accepting premium payments, and that those who paid premiums after March 31, would be refunded.
No specific date has been announced for ResLife’s closure, but management is working with stakeholders to complete policyholder payments by the end of July 2019.
Policyholders and claimants are to benefit from a settlement package of $103 million in cash payout and $300 million in bonds.
This will see eligible policyholders or claimants due less than $20,000, receiving cash, and the balance in 15-year bonds.
While the closure of the company would affect just over 30 jobs, Barbados TODAY was unable to ascertain what percentage of the insurance market the company catered to.
ResLife was established primarily to take control of the life insurance portfolio that was previously held by CLICO International Life Insurance Limited in Barbados. [email protected]