FSC monitoring dispute regarding suspension of BARP insurance plan

By Emmanuel Joseph

The Financial Services Commission (FSC) is keeping a close eye on the dispute in which three insurance companies have suspended the Life Benefit plan held by 14 000 members of the Barbados Association of Retired Persons (BARP).                                                        

FSC chairman Oliver Jordan has confirmed to Barbados TODAY that the matter has been brought to the attention of the state agency responsible for supervising and regulating insurance and other non-bank financial institutions, following complaints from policyholders.

“We will get involved indirectly because, obviously, we have an interest in making sure there is coverage and there is more protection prospectus. Yes, policyholders have reached out to us expressing concern,” Jordan said in a brief interview.

“We are monitoring. It is something that we are aware of and representations have been made to us, so we are monitoring the situation with interest. It’s something we want to see a resolution to,” he added.

The BARP Life Benefit Plan, which includes a $5 000 death benefit that is paid to a registered beneficiary at the death of the insured person, is now in limbo as the joint underwriting insurance companies – Sagicor Life Inc., Beacon Insurance Company Limited and Trident Insurance Barbados – make a case for a higher premium.

The suspension of the group plan was made public via a Barbados TODAY story published three weeks ago in which a disgruntled BARP policyholder complained of being turned around as he sought answers regarding the status of his 95-year-old mother’s death benefit.

That same member, who asked not to be identified, on Tuesday reached out to this media house again to report that the situation had worsened.

“I had meetings with Sagicor, BARP and the FSC but no decision seems to have been made as to whether the policy is still valid. I can’t seem to get any straight answers. BARP is telling me the insurance companies are asking for a higher premium but can’t tell me how much it is. Nobody seems to be speaking on the older people’s behalf,” the policyholder lamented.

BARP President Marilyn Rice-Bowen had previously explained in an interview with Barbados TODAY that the insurance companies decided to suspend the policies and review them after the association rejected an increase in premiums.

“The suspension of the plan did not come at BARP’s request, but because you are in negotiations the insurers suspended the plan. The decision to suspend is never the insured’s decision nor the brokers’ decision. The insurers decided that in view of the fact that we were not accepting the rates as proposed, they would suspend the plan until we can arrive at a mutually identifiable premium,” she said.

“….We are looking after our members’ interests, and from where we sit, from our perspective, the premium being suggested is not in the interest of our members,” Rice-Bowen asserted, adding that BARP will continue to negotiate with the insurers until it gets what it considers the best offer for members. 

emmanueljoseph@barbadostoday.bb