THE Central Bank of Solomon Islands (CBSI) and the Ministry of Finance and Treasury (MoFT) is conducting a nationwide consultation on the Insurance Bill 2018 in relation to changes to the Insurance Act.
A team from CBSI and MoFT is now currently in the Western Province conducting the first consultations which commences on 4 March 2019. The consultation provides an opportunity for various stakeholders to discuss and comment on the key changes to the current Insurance Act. The purpose of the consultation is to get as many feedbacks and comments as possible from the stakeholders and the public on the Insurance Bill.
The consultation feedback is expected to lead to the finalization of a new Insurance Bill for consideration by Parliament in 2019. The new Insurance Bill will provide the much-needed legal underpinnings for CBSI to license, supervise, and regulate Insurance business in Solomon Islands through a framework that :
- provides clarity and certainty on the regulatory role and supervisory powers of the Insurance Controller;
- provide a modern regulatory framework that is suitable to the state of the industry and paves way for further development and growth;
- provides for innovation in insurance products and insurance services delivery channels; and
- Takes into consideration the international insurance standards, best insurance practices, and the local country context. In short, the review is necessary to create a larger, and a more sustainable and attractive marketplace, that would encourage more business entrants and in doing so create a vibrant insurance industry.
The insurance sector is a vital component of any financial system. It is a stabilizing force in the national economy that insulates businesses from unexpected financial losses and at the same time provides a social safety net for the people in Solomon Islands. The insurance sector is also growing, and more importantly, the industry is in the process of shifting focus to create new innovative micro insurance products that reflect the unique needs of Solomon Islanders.
The CBSI and MoFT welcome written submissions and or comments from stakeholders and public during the consultation meetings. The public can also make submissions online through the CBSI official Facebook page (https://www.facebook.com/cbsiinfo/) and twitter (https://mobile.twitter.com/cbsiinfo). Comments and views gathered will greatly assist in concluding the Bill for final considerations, and pursuing to Parliament for enactment that will create a well-functioning Insurance industry and will effectively manage a growing market within the global community.