With a staggering $174 billion in insurance assets under management in Barbados by local and international companies, the Financial Services Commission (FSC) will be focusing increased attention on the sector.
Oliver Jordan, chairman of the supra-regulatory body which monitors the operations of all registered financial institutions other than commercial banks, outlined a number of actions the FSC will be taking to strengthen Barbados’ position as a global hub in the insurance sector.
Barbados currently ranks seventh in the world in the captive insurance segment and has a rich history in the insurance business since the 1840s.
Speaking at the recently concluded Barbados Risk and Insurance Management (BRIM) conference hosted by BIBA, the Association for Global Business, Jordan announced a number of critical actions including sharpening the training of FSC regulatory personnel with global insurance experts.
This, he noted, was necessary to enhance the decision-making skills of the officers tasked with overseeing the massive sector.
“The global risk landscape is evolving rapidly, driven by climate change, technological disruption, and geopolitical uncertainty. For Barbados to thrive in this environment, we must not only adapt but lead,” he told scores who packed the conference room of the Wyndham Grand Sam Lord’s Castle, St Philip, where the summit was staged.
To the professionals assembled, the FSC chairman outlined that the regulatory body was listening to its stakeholders, noting that while Barbados “has many strengths, the speed of regulatory approvals has been an area of frustration”. Moreover, he conceded that “delays in processing applications can cost us opportunities, and in a competitive global market, speed matters.”
According to Jordan, the FSC was determined to be more than a regulator but a “strategic partner to the industry, a catalyst for innovation and a key pillar of Barbados’ fiscal stability”.
The chairman revealed that over the next 12 months, the agency will provide targeted training through engagement of global insurance experts who “understand the nuances of captive insurance, enterprise risk management, and emerging risks like cryptocurrency”.
Jordan believed this push towards upskilling his FSC officers will enhance the regulator’s decision-making on complex applications and the application of risk-based principles to assessments they must undertake.
In addition, the FSC chairman outlined the regulator’s plan to leverage technology to streamline its various processes to reduce delays, improve tracking and reporting, and to automate various routine tasks.
Improving the island’s competitiveness as an international hub is being incorporated into the regulatory framework, Jordan told the business executives, many of whom included overseas delegates.
He added: “As a Caribbean nation on the frontlines of climate change, we deeply understand the importance of building resilience—not just in our infrastructure but in our financial sector.
“We are integrating climate risk, digital transformation, and enterprise risk management into our regulatory strategy to ensure that Barbados remains a hub for innovative, sustainable financial services. Ultimately, the future of risk and insurance management will belong to those who embrace change, think boldly and act decisively.”
Canada is the main source market for Barbados’ captive portfolio, accounting for 51 per cent of registrants, followed by the United States with 25 per cent.
Even as the island ranks third in the Caribbean and seventh globally in captive insurance business, the number of companies establishing in Barbados showed year on year growth. In 2024, there were 19 captive formations compared to 12 in 2023. (IMC1)
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