Belize Introduces New Insurance Act for Financial Protection

This week Belize introduced a new Insurance Act, which is aimed at modernizing and enhancing financial protection.  The new act, which came into effect on October first is structured to protect the interests of Belizeans as well as the international insurance industry. It includes the introduction of micro insurance which is used as a tool for vistal disaster risk financing for the low-income productive sector. The Act shifts insurance from a rules-based framework to a risk-based approach in insurance supervision, which allows financial institutions to consider the risks in their total. The Act categorizes licenses for insurers conducting business in Belize and from within Belize and makes room for the inclusion of international insurers, captives, reinsurers, and other classes of insurers. The new act also ensures alignment with International Standards, compliance with the Insurance Core Principles of the International Association of Insurance Supervisors (IAIS) and with recommendations from the Financial Action Task Force (FATF). Minister of State in Belize’s Ministry of Finance, Christopher Coye commented on the new Act, saying quote “the Government of Belize is committed to the observance of international best practices, especially those that foster financial stability, economic development, financial inclusion, and protection of consumers. The new Insurance Act is a demonstration of that commitment, and we look forward to the implementation of this legislation,” end of quote.