Govt. to Approve Foreign Currency Denominated Insurance Products

The Government is to approve a number of foreign currency denominated insurance products for issue, in response to calls from local insurance companies for the Financial Services Commission (FSC) to give the green light.
“After careful consideration, it was concluded that the types of foreign currency denominated insurance products under consideration would have limited impact on the foreign exchange market and could assist businesses that require such insurance,” Minister without Portfolio in the Office of the Prime Minister, with responsibility for Information, Telecommunications and Special Projects, Hon. Daryl Vaz, told today’s (October 7) post-Cabinet press briefing at Jamaica House.
The products to be approved are: general insurance and other ordinary long-term insurance, or industrial life insurance; ordinary long-term insurance, excluding equity lined/bancassurance insurance; and sickness and health insurance.
Under the Bank of Jamaica Act, insurance companies are only permitted to hold five per cent of their assets in foreign currency denominated instruments, as prescribed by Ministerial Order.
“This limit will remain with a view to making further adjustments if the market conditions allow,” Mr. Vaz stated.