2024 ICB Annual Report Final Draft

Page 1


This print copy of the Annual Report is printed in limited quanity for limited distribution

An electronic version of this Annual Report can be viewed and downloaded on the ICB website (www icb gov bs)

ABOUT THE ICB

Insurance Commission of The Bahamas (ICB)

The Insurance Commission of The Bahamas (ICB) is the independent regulatory authority responsible for supervising and regulating the insurance industry in The Bahamas. Established under the Insurance Act, 2005, the Commission promotes the growth, integrity, and stability of the sector by ensuring sound business practices, protecting policyholders, and enforcing legislative compliance

The Commission oversees the licensing and regulation of domestic and international insurance companies, intermediaries, and salespersons. It also administers the External Insurance Act, 2009, and enforces standards in areas such as solvency, corporate governance, anti-money laundering, and market conduct

The Commission is led by Superintendent of Insurance Dana MunningsGray, under the direction of a Board of Commissioners appointed by the Minister of Economic Affairs. Dr. Keith Major is the Chairman, and Dwayne Mortimer is the Deputy Chairman. The leadership team brings decades of experience in insurance supervision, financial regulation, and law and is committed to advancing regulatory excellence and innovation

As an active member of the International Association of Insurance Supervisors (IAIS) and other key international and regional bodies, the Commission works to ensure that The Bahamas remains aligned with evolving global best practices Through principled regulation, industry engagement, and a forward-looking approach, the Commission supports the continued development of a resilient and competitive insurance market.

Mission and Vision

Mission

Our mission is to protect the interests of stakeholders, through effective regulation and supervision of the insurance industry in The Bahamas.

Vision

To ensure consumer confidence

CoreValues

Trust, Our Cornerstone Integrity, Our Commitment. Accountability, Our Promise

Our success depends on: Meaningful engagement with our stakeholders

Our willingness to innovate as we grow

Our enduring commitment to the professional development of our team.

June 25, 2025

Senator the Hon. Michael Halkitis

Minister of Economic Affairs

Ministry of Finance

Cecil V Wallace-Whitfield Centre

Cable Beach

Nassau, N.P., Bahamas

Dear Honourable Minister,

In accordance with Section 18(1) of the Insurance Act, 2005, and on behalf of the Members of the Insurance Commission of The Bahamas, I am pleased to submit the Annual Report for the year ended December 31, 2024 Included with this report are the Audited Financial Statements for the same period.

Yours sincerely, Insurance Commission of The Bahamas

Executive Summary

The Insurance Commission of The Bahamas (ICB) remains steadfast in its mandate to maintain a sound insurance market that is fair, transparent, and resilient. In 2024, the Commission strengthened its role as a trusted regulatory authority through strategic initiatives focused on market stability, consumer protection, legislative reform, and international collaboration

Market Oversight and Performance

The domestic insurance market remained stable, with life and general insurers reporting modest growth in gross written premiums and improved capital adequacy. The Commission conducted targeted onsite inspections, enhanced offsite monitoring, and issued updated prudential guidance to support sound risk management and solvency standards across the industry.

Captive Insurance and International Business

The international insurance sector remains a vital part of The Bahamas’ financial services landscape Interest in captive insurance, particularly from Latin America and North America, continues to emerge. The Commission completed research to support enhancements to its supervisory approach for captives and protected cell structures, with initiatives planned to strengthen alignment with international regulatory expectations

Legislative and Regulatory Reforms

The Commission advanced several legislative amendments to strengthen its supervisory powers and align the insurance regulatory framework with global standards. Key reforms included enhancements to the Insurance Act, supporting regulations, and introducing provisions addressing innovation and InsurTech These reforms are intended to safeguard policyholder interests, support responsible innovation, and promote sector resilience

Innovation and Technology

In line with its digital transformation goals, the Commission launched its online complaints management portal, expanded its data analytics capabilities, and began developing a regulatory sandbox framework to foster innovation These initiatives will improve service delivery, enhance regulatory efficiency, and support responsible technology adoption within the insurance sector.

AML/CFT Supervisionv

The Commission maintained a supervisory regime for an laundering, countering the finan terrorism, and proliferation f (AML/CFT/PF) Risk-based ins and industry outreach activitie conducted to ensure nation international standards complian Commission also contributed country’s national AML/CFT strat supported the insurance preparedness for ongoing evaluatio

Stakeholder

Engagement and Capacity Building:

The Commission hosted its first InsurTech Compliance, Innovation, and Regulatory Practices (ICIRP) course in partnership with the University of Cambridge and BIFS. It also convened forums for CEOs and compliance officers. It held its second annual Salesperson Training Course—part of its broader efforts to strengthen frontline industry knowledge and professional standards These initiatives continue to foster industry dialogue, build capacity, and deepen regulatory understanding.

The Commission remains committed to fostering a dynamic insurance sector that serves the needs of Bahamian consumers and global investors. It will continue to strengthen its regulatory framework, support innovation, and uphold The

OUR HISTORY

The story of Colonial Life Insurance Company (CLICO) and its financial collapse and impact on regulatory reforms in the country directly led to the formation of the Insurance Commission of The Bahamas

CLICO was a significant insurance company operating in the Caribbean, including The Bahamas. It offered a variety of insurance products such as life insurance, annuities, and other financial services However, the company faced significant financial trouble due to mismanagement, poor investments, and an unsustainable business model

In the mid-2000s, CLICO's parent company, CL Financial (based in Trinidad and Tobago), experienced severe financial distress, which led to the eventual collapse of CLICO in several Caribbean nations, including The Bahamas. This situation caused significant losses for policyholders and creditors and revealed major weaknesses in the regulatory framework overseeing the insurance industry in The Bahamas.

The fallout from CLICO's collapse was a wake-up call for the government and regulators. There was a realization that there were gaps in the oversight of the insurance sector, particularly in the financial health of insurance companies and the protection of policyholders. In response to this crisis, the Bahamian government took steps to strengthen the regulation of the insurance industry

One key outcome of the CLICO collapse was the creation of the Insurance Commission of The Bahamas (the Commission) in 2009 The Commission was established to regulate and supervise the insurance industry, ensuring that companies maintain financial solvency, operate transparently, and protect the interests of policyholders.

Through the establishment of the Insurance Commission of The Bahamas, an independently established statutory body, The Bahamas has adopted a robust regulatory framework to minimize inherent risks and ensure that insurance companies operating in and from within The Bahamas are financially sound, prudent, and well-managed

Thus, we are happy to report that no such instances have since occurred within The Bahamas This reaffirms the Commission’s allegiance to promoting a vibrant and competitive insurance marketplace and enhancing the overall stability of the sector while safeguarding the interests of policyholders

CHAIRMAN’S MESSAGE

I am privileged to present the 2024 Annual Report of the Insurance Commission of The Bahamas. This report reflects a year of deliberate progress and strategic regulatory advancement, driven by a steadfast commitment to shaping a resilient, transparent, and integrity-led insurance sector.

During 2024, the Commission continued to execute its oversight mandate with consistency and strategic focus, advancing its priorities amid global economic uncertainty, ongoing technological transformation, and heightened expectations for governance and regulatory compliance. Notably, the Commission sustained strong, purposeful engagement with licensees on key regulatory priorities including prudential supervision, anti-money laundering, and the launch of the InsurTech programme, which sits at the intersection of innovation and regulatory compliance. Our contributions at regional and international forums continued to affirm The Bahamas’ reputation as a wellregulated jurisdiction and an engaged participant in global financial sector dialogue.

During the year, the Commission deepened its engagement with stakeholders through a range of impactful initiatives, including the CEO Forums, expanded outreach and training programmes, and active support for legislative reform efforts Notably, we utilised the

ORBS platform to conduct our AML/CFT Risk Assessment of licensees, enhancing the efficiency and consistency of our supervisory processes We also strengthened partnerships with domestic institutions and international regulatory counterparts, while prioritising staff development and cross-sector learning to support for the evolving demands of insurance supervision

On behalf of the Board, I extend sincere appreciation to Superintendent Dana L. Munnings-Gray for her visionary leadership, and to the entire team at the Commission for their professionalism, dedication, and unwavering commitment to regulatory excellence. I also wish to acknowledge our licensees and stakeholders, whose ongoing cooperation and shared commitment remain vital to shaping a resilient, well-regulated, and forwardlooking insurance industry.

SUPERINTENDENT’S MESSAGE

The year 2024 was marked by purposeful action, sustained dialogue, and measurable progress It called on us not only to regulate, but to anticipate guiding the insurance sector through evolving challenges while remaining firmly committed to our core mandate: protecting policyholders by promoting insurer soundness, fair conduct, and market integrity In doing so, we continued to strengthen public confidence in the sector and uphold the standards that anchor a resilient, trusted insurance framework in The Bahamas

I remain deeply committed to the Commission’s mandate of providing effective supervision across both the domestic and international insurance sectors Our regulatory and policy decisions were shaped by relevant data, aligned with international standards, and strengthened through consistent, meaningful engagement with stakeholders at every level Throughout the year, we maintained a strong focus on monitoring financial soundness, ensuring compliance with AML/CFT/CPF obligations, and fostering innovation within the industry with particular attention to the InsurTech programme and the continued expansion of our outreach through strategic communications, speaking engagements, and an enhanced digital presence

Among the key milestones of the year was the continued deepening of our engagement with international and regional bodies, including the International Association of Insurance Supervisors (IAIS), the Caribbean Regional Compliance Association (CRCA), the Caribbean Financial Action Task Force (CFATF), and the Caribbean Association of Insurance Regulators (CAIR) The Caribbean insurance regulatory landscape is shaped by an evolving network of national authorities, regional bodies, and crossborder legislative frameworks requiring close collaboration to ensure consistent, effective oversight The Commission recognises the importance of its role within this network and remains committed to active participation in shaping regional standards and dialogue. At the same time, we advanced key domestic priorities, including support for legislative reform, the expansion of supervisory training, and meaningful engagement with industry stakeholders through initiatives such as the Compliance Blue Table Talk and the Insurance Professional Refresher Training Seminar

DANA MUNNINGS-GRAY

One of the year’s most significant accomplishments was the launch of the inaugural InsurTech Compliance, Innovation, and Regulatory Practices (ICIRP) course developed by the Commission in collaboration with the Cambridge Centre for Alternative Finance at the University of Cambridge and The Bahamas Institute of Financial Services. This six-week programme, the first of its kind in the region, reflects our continued commitment to capacity building and regulatory readiness in a rapidly evolving financial and technological landscape The course brought together professionals from across the insurance sector, as well as experts in financial crime, law, and regulation.

SUPERINTENDENT’S MESSAGE CONT’D

The Commission is proud to have introduced this initiative, not only for its technical content but for the opportunity it created to inspire a shared vision for digital transformation within the industry Participants expressed optimism about the future of innovation in the sector, and it is our hope that the programme will serve as a catalyst for meaningful and lasting change in the way insurance business is conducted in The Bahamas.

This year, the Commission deepened its investment in staff development, strengthened its digital infrastructure, and advanced public education efforts particularly around the critical role insurance plays in safeguarding life and property. We also proudly marked the 15th anniversary of the Commission’s establishment a meaningful milestone that not only reflects the passage of time, but affirms our continued commitment to building a resilient, transparent, and effective regulatory authority This anniversary stands as a powerful reaffirmation of the values that define our leadership integrity, accountability, and resilience and of our unwavering responsibility to uphold public trust and regulatory excellence It also reflects the Commission’s growth as a regional leader in insurance supervision and our continued commitment to embracing innovation, leading with integrity, and remaining responsive to the evolving needs of the market

I am deeply grateful to the Board of Commissioners, under the leadership of Chairman Dr Keith Major, Sr , for its steady guidance and principled oversight I also thank the staff of the Commission whose commitment, discipline, and daily efforts continue to advance our mandate in tangible and meaningful ways Their work remains the foundation of our progress and the reason we are able to meet the evolving demands of insurance regulation with confidence and clarity

As we turn the page to 2025, the path ahead is defined by both challenge and opportunity We remain steadfast in our mission to safeguard policyholders, uphold rigorous standards, and foster an insurance sector that is not only resilient but forward-thinking Our success depends on continuous vigilance, collaboration, and innovation With the dedication of our Board, staff, and partners, I am confident that the Insurance Commission will continue to lead with integrity and purpose, strengthening the foundation upon which the industry and the wider Bahamian economy can thrive

STRATEGIC PILLARS AND VISION 2025

THE COMMISSION MOVING FOWARD

MANDATE

To uphold and ensure adherence to the Commission’s regulatory framework by strengthening the Commission’s regulatory oversight.

VISION

To promote an innovative insurance marketplace while ensuring consumer protection stability through prudent, responsible and collaborative regulation

MISSION

The Commission’s Strategic Mission for the period of 2025 – 2029 is to encourage market entry and innovation, support product diversity, and foster competition while strengthening consumer protection by enhancing consumer education and awareness, ensuring fair claims handling, prudential regulation, examinations and solvency monitoring

CORE VALUES

The Core Values that will underpin the initiatives and efforts of the Commission Pursuant to the 2025 – 2029 Strategic Plan are:

Integrity

Consumer

Protection

Accountability

Innovation

Sustainability

Collaboration

Excellence

Strategic Plan Overview

STRATEGIC PLAN, 2025 – 2029

Legislative Reform and Regulatory Policy

(Reform, Develop and Implement)

To promote and ensure a vibrant and attractive insurance marketplace while enhancing consumer protection in alignment with best practices and international standards.

Reform Legislative Framework

Enhance Regulatory Policy

Enhance Standard Operating Procedures

Foster Innovation

Adopt InsurTech Solutions

Support Product Diversity

Harmonize with International Standards/International Best Practices

Relevant and Effective Supervision & Prudential Regulation

(Monitor, Assess and Enforce)

To increase regulatory efficiency and outcomes through cooperative supervision, examinations and relevant investigations and enforcement

Cooperative/Internal Supervision

Enhance Operational efficiency and Risk Management

Enhance Offsite and Onsite Supervision

Enhance mandates of the Investigations and Enforcement Unit

Periodic Stress Testing

(i e conduct regular stress tests on insurance companies to evaluate their ability to withstand economic shocks or largescale events such natural disasters

Enhanced Solvency

Monitoring

Regulatory Collaboration & Stakeholder Engagement

(Educate, Communicate and Engage)

To strengthen regulatory outcomes through education, collaboration and stakeholder engagement

Regulatory Partnerships/PublicPrivate Partnerships

Strengthen external relations via communications and engagement

Educational Programs and ongoing training for Licensees/Registrants

Stakeholder Engagement

(i.e. quarterly Fireside chats, industry briefings and establishment of insurance day/week)

CEO Forum

Effective and Transparent Communications

Key Issues and Emerging Trends

Climate Change and Environmental Risks

Increasing frequency and severity of natural disasters, such as hurricanes, floods, and wildfires, have heightened the risk profile for insurers, particularly in regions prone to these events

Technological Innovation (InsurTech)

The rapid pace of technological innovation in areas like artificial intelligence (AI), machine learning, and blockchain presents challenges in terms of regulation, cybersecurity, and ensuring fairness

Cybersecurity and Data Privacy

The increasing reliance on digital platforms exposes insurers and consumers to higher risks of cyber threats, data breaches, and fraud.

Economic Pressures and Affordability

Economic uncertainty, inflation, and changing economic conditions are leading to higher costs for consumers and pressures on insurers to maintain profitability while keeping premiums affordable.

Fifteen Years of Purpose, One Future of Progress

Celebrating the 15th Anniversary of the Insurance Commission of The Bahamas

2009–2024

For 15 years, the Insurance Commission of The Bahamas has operated with a clear purpose: to protect policyholders, promote sound insurance practices, and uphold the integrity of the Bahamian financial sector. Established on July 2nd, 2009, the Commission succeeded the Office of the Registrar of Insurance Companies (ORIC) under the Insurance Act, 2005, and the External Insurance Act, 2009, with an expanded mandate to regulate, enforce, and supervise both domestic and external insurance markets

The theme of this milestone, “Fifteen Years of Purpose, One Future of Progress”, captures the arc of the Commission’s work: rooted in mission, committed to evolution, and firmly focused on leading the insurance sector toward a modern, resilient, and internationally aligned future.

A Foundation of Purpose

From its inception, the Commission prioritized building a risk-based regulatory framework to ensure that insurance companies operating in The Bahamas remained financially sound and responsibly managed Early years saw the development of the Risk-Based Supervision (RBS) Framework, the re-registration of all licensees, and the introduction of tools like the Supervisory Ladder of Intervention and RiskBased Capital assessments

The Commission also invested in building institutional capacity and forming partnerships with regional and international regulatory bodies. These efforts ensured that Bahamian insurance regulation met international standards and prepared the sector to withstand emerging risks.

Leadership Renewal

On July 1st, 2023, Dr Keith Major was appointed as Chairman of the Board of Commissioners, strengthening the Commission’s connection to broader economic and policy development efforts Dr Major is the first Non-Executive Chairman of the Commission.

In 2023, the Commission bid farewell to its longest-serving Superintendent, Mrs. Michele Fields, whose leadership had helped shape the organization’s strong regulatory foundation. Shortly thereafter, in December 2023, Mrs. Dana Munnings-Gray stepped in to serve as Acting Superintendent of Insurance. Subsequently, on July 1st, 2024, Mrs Munnings-Gray was officially appointed as the Superintendent of Insurance, ushering in a new era marked by a strategic focus on digital transformation, innovation, and institutional modernization.

Legislative Modernization

Work began on modernizing the Insurance Act and the External Insurance Act. This initiative will enhance regulatory clarity, streamline supervision, and reflect current global standards, ensuring that the regulatory structure supports progress across all segments of the insurance market

Digital and Operational Innovation

In response to the pandemic and the wider digitization of financial services, the Commission modernized its internal systems by:

Introducing electronic filing and remote submissions for licensees

Launching a public-facing Complaints Portal to improve consumer access and internal case tracking

Advancing IT infrastructure to support hybrid work models and secure digital communication

Focus on Climate and Systemic Risk

In 2024, the Commission launched its first climate risk survey across the insurance sector, assessing preparedness, exposure, and the role of regulation in building long-term resilience A follow-up climate risk webinar brought licensees and industry experts together to discuss adaptation strategies in a region facing rising climate volatility.

Raising the Bar for Partnership

In partnership with GAMA Bahamas, Bahamas Insurance Brokers Association (BIBA), Insurance Institute of the Bahamas (IIB), and the Bahamas Insurance Association (BIA), the Commission supported the revamp of the salespersons examination, promoting consistent professional standards for insurance intermediaries

Strengthening the Foundation for Progress

During 2024, the Commission expanded its internal structure through the establishment of specialized departments designed to enhance its operational capacity and regulatory effectiveness These include the Actuarial and Financial Analytics Unit, which supports riskbased supervision through deeper financial analysis and stress testing; the IT Unit, which strengthens digital infrastructure and cybersecurity; and the Registry and Document Management Unit, which ensures secure and organized handling of regulatory records. The creation of the Communications, Business Intelligence, and Consumer Awareness Unit has broadened the Commission’s ability to engage the public, monitor market conduct, and advance financial literacy. The On-site Examination Unit provides focused, in-depth reviews of licensees to support proactive supervision At the same time, the Finance and Human Resources Units have been instrumental in improving internal accountability, staff development, and resource planning. The establishment of an Internal Audit function reinforces governance and internal controls across all areas of the Commission’s work Together, these departments reflect the Commission’s commitment to continuous improvement and position it to fulfil its mandate with greater agility, transparency, and foresight.

The Road Ahead: One Future of Progress

As the Commission celebrates this milestone, its focus remains fixed on the future one shaped by resilience, innovation, and global alignment

Strategic priorities moving forward include:

Finalizing the modernization of the Insurance Act and the External Act to align with evolving industry needs

Expanding the use of data analytics to enhance supervisory effectiveness

Assisting domestic and external insurers in addressing climate-related and technological risks

Strengthening the Commission’s regional leadership through active international collaboration

Building consumer trust and market confidence by promoting transparency and delivering targeted education

Conclusion

For fifteen years, the Insurance Commission of The Bahamas has served with purpose. Today, as it stands at the threshold of a new chapter, it is poised to lead the insurance sector toward a future defined by progress, accountability, and i ti Th h d l ti

COMPANY OVERVIEW

As of December 31, 2024

CORPORATE GOVERNANCE

Under the Insurance Act, 2005, the Commission shall consist of a maximum of seven commissioners, including the Superintendent of Insurance, the Deputy Superintendent of Insurance and three to five other members, comprised of persons with wide expertise in areas of insurance, finance, commerce, law or administration Members of the Board of Commissioners are appointed by the Governor-General, after consultation with the Minister of Finance.

The Chairman, or in his absence the Deputy Chairman, in the absence of both of them, such other person as authorised by the Chairman, shall preside at all meetings of the Commission The Superintendent of Insurance shall be the Chief Executive Officer of the Commission and shall have charge of the day-to-day management and operation of the office.

The Deputy Superintendent of Insurance shall have and may exercise the function of the Superintendent, in the event of the Superintendent’s inability to act or a vacancy in the office exists.

The Commissioners meet at least once per month and are responsible for the overall governance of the Office of the Commission and for the establishment of related policies.

As of July 2024, the Chairman established five (5) committees of the Board of the Commissioners chaired by the following Commissioners:

Human Resources Committee - Dr. Keith Major

Internal Audit and Strategic Planning Committee - Dwayne Mortimer

Audit and Finance Committee - Ansel Watson

Market Surveillance and Conduct - Janique Wilson

Legal and Compliance - Lourey Smith

CORPORATE GOVERNANCE

Chairman

Deputy Chairman

Board of Commissioners

Ansell Watson, Janique Wilson, Lourey Smith

Superintendent of Insurance Dana Munnings-Gray

Deputy Superintendent of Insurance Vacant

Dr. Keith Major
Dwayne Mortimer

DR. KEITH MAJORChairman

ANNA KATRINA MARCHESI

Student Class A1 - 20

DANA MUNNINGS-GRAY

MEMBERS OF THE BOARD OF Commissioners

DWAYNE MORTIMER Deputy Chairman

Dwayne Mortimer was appointed as the Non-Executive Deputy Chairman of the Commission effective July 1, 2023 Mr Mortimer was educated in The Bahamas and Ireland, earning a Bachelor's Degree in Hotel Management from Shannon College of Hotel Management, Ireland. After holding several managerial positions in the hotel industry in the UK and The Bahamas, he left the hotel industry in 1993 to join the finance department of a major insurance company in The Bahamas. He qualified as a Certified Public Accountant in the State of Georgia and has held senior executive positions in various industries including healthcare, insurance, real estate development, maritime and hospitality He currently serves as the President of Balmoral Club, a position he has held from 2010

LOUREY SMITH

Student Class A1 - 20

Lourey Smith was educated at The University of the West Indies (Mona Campus) in Jamaica, where she achieved a Bachelor of Arts Degree with Honors and a Master of Science Degree in Economics before returning to The Bahamas where she worked with the Government prior to transitioning into Law under the pupillage of the late Winston Saunders She was admitted to the Bahamas Bar in October 1986 and has extensive experience in transactional law involving conveyancing, mortgages, contracts, commercial and corporate structures, business ventures, estate planning and administration and intellectual property She is a past Deputy Chairman of The Bank of The Bahamas, past Director of the Airport Authority and past Director of the Bahamas Protected Area Fund She is presently the President/Director of The Exuma Foundation (Bahamas) Limited and a member of the Advisory Committee of The Moriah Harbour Cay National Park in Exuma

MEMBERS OF THE BOARD OF Commissioners

ANSEL WATSONCommissioner

Ansel Watson is a Chartered Accountant and Chartered Financial Analyst charter holder As a professional accountant, he has a broad range of knowledge and experience in finance, banking, operations, investments, investment funds, insurance, accounting and audits Mr Watson is President and CEO of Investar Securities Ltd and Brickell Management Group Ltd Mr Watson began his career in accounting with Deloitte and over the past thirty years he has worked with several financial and international institutions

He was strategically involved in the transition of an offshore bank and trust company to Bahamian ownership and the expansion and acquisition of investment fund operations Mr Watson served on the Bahamas Institute of Chartered Accountant's (BICA) Council for several years and was Chairman of the Continuing Professional Education Committee A past President and Treasurer of the Rotary Club of New Providence and a former Deputy Chairman on the Board of Directors of the Bahamas Electricity Corporation/BPL Mr Watson currently serves on the Catholic Board of Education

Student Class A1 - 20

JANIQUE WILSON

Janique Wilson is an established and experienced senior executive with nearly 20 years in the financial services industry She is a graduate of St Mary's University, Canada, earning Bachelor of Commerce degree in Finance Mrs Wilson's professional qualifications include certifications from the Canadian Securities Institute, the International Compliance Association and the Association of Certified Anti-Money Laundering Specialists

Along with her many years in financial services, she began her career in accounting, working in both the technology and insurance industries Mrs Wilson is currently employed at a leading private wealth management company as the Head of Risk and Compliance as well as the Money Laundering Reporting Officer She is also a member of the company’s Executive Committee

O R G A N I Z A T I O N A L C H A R T

MANAGEMENT TEAM OF THE Insurance Commission

STAFF OF THE INSURANCE Commission

COMMUNICATIONS,

BUSINESS INTELLIGENCE AND CONSUMER AWARENESS

STAFF OF THE INSURANCE Commission

STAFF OF THE INSURANCE Commission

STAFF OF THE INSURANCE Commission

INTERMEDIARIES AND MARKET

REGULATORY REVIEW

Data as of December 31, 2024

INSURANCE COMPANIES UNIT

The Insurance Companies Unit plays a pivotal role in ensuring that the Commission achieves its mandate to safeguard the integrity and stability of The Bahamas’ insurance sector The Unit ensures that insurance companies operating in and from within The Bahamas, as well as external intermediaries, comply with insurance legislation and other relevant laws. This mandate is carried out through proactive oversight of insurers and external intermediaries operations.

INSURANCE MARKET STRUCTURE

The insurance industry in The Bahamas comprises of both a Domestic and an External market The Domestic Market consists of insurance companies and intermediaries that offer insurance services and products locally and are registered in accordance with the Insurance Act, Chapter 347. Insurance companies and intermediaries offering products and services exclusively to the international market are licensed under the External Insurance Act, Chapter 348

Insurers registered under the Insurance Act and those licensed under the External Act are authorized to conduct either long-term (life and health) or general (property and casualty) insurance business. Additionally, insurers licensed under the External Act are classified as either restricted or unrestricted Restricted insurers are captive insurance companies that are only authorized to conduct insurance business with the parent company or other affiliates DOMESTIC INSURERS

During 2024, there was minimal movement in the number of companies in the domestic insurance market, while there was a moderate decline in the number of companies in the external insurance market The licences of four segregated accounts companies and one intermediary licensed under the External Insurance Act were revoked during 2024

PRUDENTIAL SUPERVISION AND REGULATION

The Unit supports the Commission’s Prudential Framework by assessing insurers and intermediaries adherence to international best practices embodied in the insurance legislation and the Commission’s guidelines The Framework includes, but is not limited to, the following:

Risk-Based Supervision: Tailoring supervisory oversight to the size, complexity, and risk profile of each insurer

Risk-Based Capital and Financial Soundness: Ensuring companies operate and in financial sound manner and meet or exceed capital requirements based on their risk profile and other key financial metrics.

Corporate Governance: Ensuring that the Board and senior management are fit and proper and effectively carry out their respective responsibilities for oversight and management of the insurer

Enterprise Risk Management: Ensuring that insurers establish and operate within a sound Enterprise Risk Management framework appropriate to the nature, scale, and complexity of their business and risks

Common Reporting Standards: Ensuring insurers institute controls and mechanisms to comply with the standards.

Supervisory Colleges: Collaboration with fellow regulators of internationally or regionally active insurers to ensure that the risks of the entity or group are considered in the supervisory process.

Authorization of Market Entrants: Assessing the financial soundness and operational capacity of entities proposing to conduct insurance business in the market

Approval of Insurance Products: Assessing the suitability of products for the market and the insurers' financial and operational capacity to support the proposed products and services

RISK BASED CAPITAL

The fourth and final Quantitative Impact Study (QIS) on the Commission’s Risk-Based Capital Framework was conducted during the year This iteration of the QIS included amendments to consider the impact of IFRS 17. It garnered significant participation from the general insurance market, providing valuable information to assist in finalizing the RBC Framework during early Q4 2025.

APPROVAL OF KEY FUNCTIONS

Material changes to insurers and intermediaries’ operations, including the individuals responsible for key functions require the approval of the Commission in accordance with sections 30(1) and 30(4)(b) of the Insurance Act and section 10(3) of the External Insurance Act. Once such applications are submitted to the Commission, the individuals proposed to serve in key roles including senior management, directors, compliance officers and money laundering officers are assessed to determine the fitness of propriety of these individuals in accordance with the Commission’s Guidelines for Assessing Fitness and Propriety and other relevant guidelines During 2024 the Commission approved 33 applicants to serve in key functions as follows:

COMMON REPORTING STANDARD (“CRS”) INITIATIVES

During the period, insurers registered under the Insurance Act, Ch. 347, or licensed under the External Insurance Act, Ch 348, to conduct long-term insurance business specifically classes of life insurance (whole, universal, and variable life insurance, and/or annuities) were required to complete two questionnaires assessing the insurer’s compliance with CRS requirements. These questionnaires outlined the CRS policies and procedures that the Commission mandates its registrants/licensees to adopt to strengthen their CRS internal control framework.

The first questionnaire informed the Commission’s understanding of the risks associated with insurers' CRS compliance The second questionnaire, a CRS Self-Risk Assessment, served dual purposes: it outlined the CRS policies and procedures that the Commission requires its registrants/licensees to adopt to strengthen CRS internal controls, and it allowed the Commission to assess the insurers' CRS risk appetite, along with their systems and controls, and evaluate the effectiveness of managing and mitigating those risks

To ensure continuous compliance with CRS requirements, the Commission has drafted guidelines to assist its registrants/licensees in navigating the complexity of CRS reporting These guidelines are expected to be issued for public consultation during the first quarter of 2025

NEW PRODUCT APPLICATIONS

The introduction of new products to both local and external markets, as well as changes to existing products, must be approved by the Commission pursuant to Section 42(1) of the Insurance Act These products must be suitable for the market, and the insurer must have the financial capacity to support them During the year, the Unit processed six applications for new products, all of which were approved These products included variable life, whole life and property insurance policies.

SUPERVISORY COLLEGES

During 2024, the Commission participated in supervisory colleges for two regionally active insurance groups, encompassing four insurance companies These colleges served as a collaborative platform with regional regulators, providing a comprehensive overview of the groups' operations. This included detailed insights into risks and exposures, risk management strategies, strategic plans, financial health, corporate governance, and compliance levels. The extensive information gathered significantly improved the effectiveness of group-wide supervision and the regulation of locally registered insurers

APPLICATIONS TO ESTABLISH NEW INSURANCE COMPANIES

A pre-application meeting is required before an application for registration or licensing can be considered During these meetings, the Commission reviews the business plan with the prospective applicant, identifying any areas that may not comply with legislative requirements or may be unsuited for the market. Once an application is submitted, the fitness of the proposed directors, senior management, risk management processes as well as the financial viability, among other aspects of the application, are assessed Not all pre-application meetings result in an application being submitted to the Commission

Throughout the year, the Commission received and approved four applications, including two long-term cell applications. These applications have been approved in principle and are pending the applicants' fulfillment of the conditions of approval prior to licensing or registration All approved applications pertain to companies to be licensed under the External Act once the conditions of approval are satisfied

IMPLEMENTATION OF IFRS 17

The implementation of IFRS 17 continued to challenge the insurance industry. The Commission engaged with insurers and their auditors to understand these challenges, which include addressing negative reserves, balancing issues, and working with consultants to grasp the nuances of the standards The Unit processed an unusually high volume of extension requests from the industry for the submission of quarterly financial returns and annual audited financial statements. Approximately 70% of insurers across the domestic market requested extensions to the deadline for submitting audited financial statements for the 2023 financial year-end, with several requesting multiple extensions primarily due to the challenges related to the implementation of IFRS 17.

There were similar experiences with Quarterly Financial Returns for the first quarter of 2024, with requests for extensions diminishing for the second and third quarters as the industry continued to resolve implementation issues. Based on dialogue with regulators around the region that have implemented IFRS 17, the implementation experience in The Bahamas has been similar to other jurisdictions The industry and the Commission will continue training regarding this new standard during 2025 and beyond

The Commission also drafted and disseminated for consultation, Guidelines for Assessing Insurers' IFRS 17 Discount Curve. The Guidelines detail the model the Commission proposes to utilize to generate the reference IFRS 17 discount rate curves for liquid and illiquid insurance contracts

These Guidelines inform insurers of the information that actuaries should disclose regarding how the insurer’s discount rates have been derived By publishing reference curves, the Commission supports insurers who may face challenges developing the discount rates It is also anticipated that the reference curves will drive convergence of practice in the market over time. The aim of these Guidelines is to allow the Commission to assess the reasonableness of the discount curves used by insurers.

These Guidelines are being adjusted as necessary based on feedback from the industry, auditors, and other stakeholders The Commission intends to publish the guidelines during Q1 2025

INSURANCE INDUSTRY OVERVIEW

GENERAL INSURANCE MARKET

AGGREGATE UNAUDITED FINANCIAL STATEMENTS DOMESTIC INSURERS

During 2024, the general insurance sector demonstrated strong growth, underpinned by notable increases in revenue and asset accumulation The sector’s total assets expanded by 9 9% to $569 6 million, up from $518 3 million in 2023 This performance was primarily driven by a 24 6% increase in reinsurance contract held assets, which rose from $138 5 million to $172.6 million, as insurers strengthened their risk mitigation strategies. Further, cash and cash equivalents rose by 6.9% to $158.5 million, reflecting improved liquidity positions across the sector. Investment portfolios also grew by 11.5% to $135.2 million, amid efforts to optimize returns in a higher interest rate environment Moreover, insurance contract assets increased by 18 9% to $33 2 million, indicative of growth in unearned premiums tied to business expansion However, fixed assets and intangibles reduced by 13.9% and 21.6%, respectively, to $24.6 million and $2.7 million. Similarly, other assets contracted 14.9% to $42.8 million.

GENERAL INSURERS INVESTMENTS

Total liabilities grew by 16.0% to $306.4 million, owing mainly to insurance contract liabilities expanding by 14 2% to $268 8 million, driven by higher policy volumes and reserve strengthening efforts Provisions and other liabilities rose sharply by 66 5% to $30 9 million, on account of expense accruals and operational provisioning Moreover, total equity stood at $263.2 million, a 3.5% increase relative to the prior year, underpinned by growth in retained earnings and additional capital reserves, which demonstrate continued financial strength and capital adequacy across the sector Though notably, reinsurance contract liabilities decreased by 33 0% to $6 7 million, feasibly reflecting changes in treaty structures or the settlement of existing obligations.

The sector recorded revenue of $563.0 million, representing a 13.7% increase over the $495.2 million recorded in 2023. Commissions rose by 8.8% to $50.7 million, consistent with increased policy sales and intermediary activity. Reinsurance costs also saw a sharp increase, rising by 31 2% to $370 6 million, which aligns with the increase in reinsurance assets observed on the balance sheet and reflects licensees’ continued reliance on reinsurance to manage exposure and enhance solvency buffers.

An analysis of the income statement revealed claims and benefits declined markedly by 34.2% to $61.5 million, which can be attributed to a lower frequency of major insured events and more favorable loss ratios. Other insurance service expenses totaled $51.0 million, reflecting a slight decline of 6 2% from the prior year, indicative of ongoing efforts by general insurers to manage administrative and service-related costs amid rising premiums and reinsurance expenditures Despite the elevated reinsurance costs, the insurance service result rose to $29.2 million, a 60.4% improvement over the prior year’s $18.2 million.

Operating expenses remained broadly stable, increasing by just 3 7% to $21 8 million Likewise, investment income held steady at $7 4 million, while other income rose by 21.2% to $3.0 million, providing a further boost to overall performance. As a result, net income more than doubled to $17.9 million in 2023, compared to $7.5 million in 2022.

For the year 2024, 31 25% of general insurers submitted Quantitative Impact Surveys (QIS) which measures the licensees’ Capital Adequacy Ratios (CAR) prepared under the IFRS 17 framework These insurers’ reported CAR ranged from 134% to 531%, all of which are satisfactory for the Insurance Commission of The Bahamas’ Capital requirements as the participating insurers displayed a strong solvency position across the sector

LONG-TERM INSURANCE MARKET

AGGREGATE UNAUDITED FINANCIAL STATEMENTS DOMESTIC INSURERS

The long-term sector recorded steady expansion, with total assets increasing by 7.8% to $1.39 billion, up from $1.29 billion in 2023. This growth was led by a 5.0% increase in total investments, which reached $1 05 billion as licensees continued to build and diversify their investment portfolios in line with long-term obligations. Other assets also rose significantly by 19 7%, totaling $132 2 million, while cash and cash equivalents surged by 28.5% to $98.4 million, underscoring improved liquidity positions within the sector. Further, reinsurance contract held assets increased by 11.5% to $45.6 million, signaling continued reliance on reinsurance arrangements to mitigate underwriting risks and manage long-term exposure Insurance contract assets, though a relatively minor component of the balance sheet, increased by 8 9% to $1 7 million Likewise, fixed assets rose moderately by 2.8% to $42.0 million, and intangible assets edged up slightly by 1.6% to $13.5 million.

LONG-TERM INSURERS’ INVESTMENTS

On the liabilities side, insurance contract liabilities climbed by 5 2% to $807 9 million, consistent with business growth and the accumulation of policyholder obligations Reinsurance contract liabilities, though still relatively small in volume, grew nearly sixfold to $0.7 million, reflecting expanded reinsurance activity or renewed treaty arrangements. Total liabilities rose by 4.6% to $914.1 million, highlighting a prudent balance of liabilities to support future claims The sector also experienced strong capital growth, with total equity rising by 14 4% to $473 1 million This increase was driven largely by an 18 4% rise in retained earnings, which reached $352 6 million, demonstrating strong profit retention and ongoing commitment to financial stability.

Total insurance revenue within the long-term market increased by 9.5% to $412.4 million, compared to $376 7 million in 2023 This growth signals continued premium growth and a healthy appetite for long-term insurance products in the domestic market

Claims and benefits, however, declined by 7 9% to $312 7 million, reflecting lower maturities or death benefit payouts relative to the prior year Commissions rose by 10 3% to $16 1 million, aligned with distribution incentives and increased policy issuance A notable feature was the shift in other insurance service expenses, which reversed from a negative $23.7 million in 2023 to a positive $9.4 million in 2024. The negative figure in the prior year was the result of adjustments by licensees who prorated future service-related expenses in advance, leading to a temporary reversal of expenses With those adjustments now normalized, the current year’s figures more accurately reflect standard operating levels Reinsurance expenses increased by 8 8% to $15 4 million, as licensees continued to use reinsurance as a risk transfer tool. Despite the increase in total expenses, the insurance service result grew by 83.5% to $58.9 million, demonstrating firm gains across the sector General and operating expenses, however, decreased slightly by 2 7% to $38 9 million Investment income rose by 3 6% to $37 7 million, supported by a favorable interest rate environment Likewise, other income climbed by 10.9% to $17.0 million, providing additional support for bottom-line results. As a result of these developments, net income for the long-term sector rose to $74.6 million in 2024, a 70 5% expansion over the $43 8 million earned in 2022

During the year, 81 82% of long-term insurers submitted their QISs, with reported CARs ranging from 185% to 3,506% with an average of 829%. These participants demonstrated a strong solvency position across the sector.

EXTERNAL INSURANCE MARKET

EXTERNAL INSURERS DATA

AGGREGATE AUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDING DECEMBER 31 2023

CAPTIVE INSURERS

The captive insurance sector posted solid growth in 2023, with total assets rising by 12.5% to $171.9 million from $152.9 million. This expansion was largely supported by stronger investment activity and an increase in liquid assets. Investment holdings climbed to $34 9 million, reflecting a 35 7% increase over the prior year, while cash and deposit balances rose by 7 6% to $27 9 million Other receivables experienced a significant surge, increasing nearly eightfold to $25 9 million from $2 9 million This sharp rise may indicate a buildup in recoverables or intra-group financial activity. In contrast, insurance contract assets dropped dramatically by 99.9% to just $2,427, likely due to claim settlements or reclassification of expected recoveries. Reinsurance contract assets were marginally higher, increasing 4 1% to $30 2 million, while intangible assets rose by 35 1% to $3 8 million

Total liabilities increased by 10.1% to $60.4 million, driven by movements in several categories Specifically, other liabilities rose by 57 8% to $20 9 million, followed by a 10 0% uptick in accounts payable and accruals to $4 7 million Also, reinsurance contract liabilities saw a modest rise of 20 9% to $623,600 These gains offset a 5 7% decrease in insurance contract liabilities to $34.0 million, from $36.1 million last year.

On the income side, insurance revenue increased by 25.8% to $38.5 million, demonstrating enhanced underwriting activity. Insurance service results rose by 38 3% to $26 2 million, supported by a 27 9% decline in total insurance services expenses. Investment income more than quadrupled to $6 6 million from $1 6 million, reflecting favorable market conditions and likely portfolio repositioning. As a result, net income reached $18.0 million, up 39.8% from $12.9 million in 2022, driven by gains across both core and investment operations

It is important to note that for companies within the External Insurance sector, "Insurance Revenue" as reported under IFRS 17 does not necessarily equate to "Premiums Written." The revenue figure incorporates service components and timing of earnings recognition, which may differ significantly from traditional premium-based metrics, especially in longduration contracts

NON-CAPTIVE INSURERS

The non-captive insurance sector recorded a modest expansion in 2023, with total assets increasing by 1.0% to reach $1.08 billion. This growth was led by an identical 1.0% increase in unit-linked investment contract assets. Other assets nearly doubled, climbing to $2.7 million, while other receivables grew by 4.3% to 1.8 million. However, cash and deposits declined by 6 9% to $13 8 million, similar to a 7 1% decrease in intangible assets to $322,306

During the review period, total liabilities increased slightly by 0.9% to $1.07 billion. This was primarily attributable to a 1.1% edge up in unit-linked investment contract liabilities to $1 06 billion Offsetting this was a 14 1% reduction in other liabilities to $9 3 million, and a slight decline in accounts payable and accruals by 1 8% to $812,906 Moreover, total equity grew by 11 0% to $6 7 million, underpinned by a 16 7% increase in retained earnings. Share capital and contribution surplus remained unchanged.

The non-captive sector’s insurance revenue grew by $2.1% to $6.5 million in 2023. Specifically, investment income rebounded from a minor loss in 2022, increasing to $227,471 Consequently, net investment results shifted from a loss of $81 7 million to a gain of $48 6 million, reflecting a strong recovery in market performance Unit-linked contract assets followed a similar path, rebounding by 147.5% to $41.8 million. As for expenses, general and operating expenses decreased by 8.0% to $4.5 million, while other income declined by 65 6% to $17,168 As a result, net income fell by 42 9% to $2 2 million, driven by reduced profitability despite improved investment results.

CEO FORUM

The Commission hosted its first CEO Forum since the pandemic There were representatives of insurance companies in attendance. Key initiatives in progress impacting the insurance industry were discussed. Additionally, insurers were reminded of the statutory and regulatory obligations of the companies. The Commission took the opportunity to entertain questions and solicit feedback Some of the topics addressed during the Forum were:

Policy updates and development,

AML Risk Assessment as well as upcoming surveys.

Data gathering

Complaints Handling

Insurers Responsibility for their intermediaries

Legislative Amendments

IFRS 17

Reporting Obligations and Deadlines

Prudential Risk Assessment

Risk Based Capital

Onsite Examination

The Commission hosted its second CEO Forum for insurance companies on September 12, 2024. During the Forum the results of the AML risk assessment were discussed as well of the major concerns identified emanating from the AML Exams. Insurers were reminded of their filing obligations and where needed, to request extensions in advance The Commission also introduced other matters that were in the pipeline including legislative amendments, climate change and Business Continuity Guidelines. The topics covered included:

The Implementation of IFRS 17

IFRS 17 Discount Rate Guidelines

Introduction of Risk Based Capital for General Insurers and amendments to RBC framework for Life Insurers

Introduction of Stress Tess for General Insurers

Filings including Audited and Unaudited Financial Statements

Dividend Approval

Risk Assessment Questionnaire

The dialogue during both forums was meaningful and will continue to inform supervisory practices.

INTERMEDIARIES AND MARKET CONDUCT UNIT

The Insurance Act, 2005 (the Act) prohibits insurance companies from selling products directly to the public, which makes intermediaries essential to the Bahamian insurance industry. The Intermediaries and Market Conduct Unit is responsible for the monitoring and oversight of insurance intermediaries. This unit oversees the activities of registered intermediaries including brokers, agents, sub-agents, adjusters and salespersons. The primary responsibility of the unit is to ensure that intermediaries comply with the legislation, guidelines and policies and promote the equitable treatment of policyholders. The Unit provides an offsite review of intermediaries’ bookkeeping and record-keeping processes, compliance with sponsor agreements, establishment of trust accounts, and the maintenance of prescribed capital during the annual renewal process.

REGISTRATION OF CORPORATE INTERMEDIARIES

AGENTS AND BROKERS

As of December 31, 2024, there were fifty-eight (58) registered agents and brokers and seventeen (17) sub-agents During the year, the Commission conditionally approved one (1) new intermediary.

Insurance agents are sponsored by licensed insurance companies to market and sell their products, while policyholders engage brokers to identify suitable insurance products for their needs Intermediaries are compensated in the form of commissions for premiums written on behalf of the registered insurer. In 2023, audited financial statements showed that the total commissions paid to intermediaries amounted to approximately $94 million, which was an increase from 2022

ADJUSTERS

The Commission is responsible for the registration and supervision of insurance adjusters in The Bahamas. These adjusters are required to fulfill the qualifications outlined in Section 120(6) & (7) of the Insurance (General) Regulations, 2010 As of December 31, 2024, there were nine (9) individual adjusters, and five (5) independent adjusters The services of foreign insurance adjusters were not required as The Bahamas experienced a relatively uneventful hurricane season in 2024.

SALESPERSONS

Salespersons are the primary vehicle for the distribution of insurance products These products must be approved by the Commission before they can be marketed and sold in The Bahamas. Salespersons represent registered insurers or corporate intermediaries to conduct insurance business. Each salesperson can be sponsored by only one insurer or intermediary at a time Salespersons must seek the Commission’s formal approval to change sponsorship As of December 31, 2024, the Commission had registered six hundred and ninety (690) salespersons, with five hundred seventeen (517) authorized to sell long-term insurance, one hundred (100) registered to sell general insurance, and seventy-three (73) authorized to sell both types of insurance.

An individual must meet registration requirements and pass a comprehensive examination to be registered as a Salesperson The process includes a review of the applicant’s fitness and propriety to ensure that there are no inappropriate market participants. The Commission examines applicants for registration as salespersons monthly in New Providence and Grand Bahama (based on demand). Salespersons are required to operate with a high degree of integrity, demonstrate professionalism, attend industry training, and pay their annual fees to renew their registration with the Commission

The Commission registered eighty (80) new salespersons in 2024. Seventy-five (75) salesperson registrations were cancelled during 2024 A salesperson’s registration may be cancelled if the individual has not conducted insurance business for a one-year period, if there is a request for cancellation, or if the Commission determines that the salesperson has breached the legislation and is rendered unfit & improper to be registered by the Commission.

SALESPERSONS

CANCELLATION OF SALESPERSONS

APPROVAL OF INSURANCE COVER WITH UNREGISTERED COMPANIES UNDER SECTION 41

Section 41 of the Insurance Act, 2005, states that no insurance cover can be obtained for:

(a) property situated in The Bahamas; or (b) liabilities arising in The Bahamas

With any unregistered Company (insurer) unless the insurance cover cannot be obtained from a locally registered insurer, or the insurance cover cannot be obtained at a comparable cost.

The exemption applies to the placement of insurance business with unregistered insurers. The Commission understands that certain insurance covers or specialty risks are unavailable in the local market or can be obtained at a more affordable premium abroad

Should any person, entity, insurance company or intermediary wish to obtain insurance coverage from an unlicensed entity, they are required to apply to the Commission for coverage to be placed Pursuant to Section 41(2) of the Act, the Commission has the authority to grant permission for placement of insurance cover with an unlicensed entity. Section 41(3) of the Act exempts the Commission from any liability toward the applicant in relation to the insurance contract concerned or its replacement.

INSURANCE

CONTRACTS WITH UNREGISTERED COMPANIES

The following table and chart breakdown the business placed with unregistered insurers as at December 31, 2024:

MARKET CONDUCT

The unit oversees investigations into matters regarding the improper actions of intermediaries and insurers A committee reviews each matter against a registered person to determine whether the individual or entity acted in good faith and to determine if there is evidence of impropriety. These investigations may result in the cancellation of registrations or the imposition of sanctions.

The Unit began to utilize Facebook and Instagram pages in August 2024 to assist with market surveillance The pages are anonymous and are designed to review registered salespersons to ensure that their social media communications and marketing comply with the Act.

In 2024, the Unit issued four (4) Advertisement Warning Letters to salespersons who incorrectly marketed themselves as agents or as unregistered companies. The letters identified breaches under Section 134 of the Act which prohibits salespersons from making misleading advertisements or representations to the public. The Unit also issued a cease & desist letter to an insurer that was advertising in a manner which was perceived as direct selling.

EXAMINATION FINDINGS

The Insurance Commission of The Bahamas’s Examinations Unit conducted one onsite examination of an insurance intermediary pursuant to Section 69 of the Insurance Act, Ch 347 The examination assessed the intermediary’s compliance with key areas such as Corporate Governance, Anti-Money Laundering, Counter Terrorism and Proliferation Financing (AML/CFT/ PF), Risk Management, and general Market Conduct The Commission observed two AML/CFT/PF findings, six Corporate Governance findings, and four Market Conduct areas of concern, including unclear underwriting processes, claims management, complaints handling, timeliness of audits, and late regulatory filings. The intermediary was assessed as high risk due to critical issues identified in its internal controls and risk management framework The intermediary will be reassessed in 2026 to further assess its implementation of corrective actions plans, the effectiveness of its internal controls and risk management framework.

SALESPERSON EXAMINATION

In October 2024, the Commission launched its revised Salesperson Examination recognizing that registered salespersons in the industry should be competent in compliance-related skills as well as have in-depth knowledge of insurance products. The exam currently includes a multiple-choice section, true & false, and fill-in-the-blanks questions The scope of the study guide and the examination were updated to include anti-money laundering content The integration of anti-money laundering and countering the financing of terrorism content, reinforces the Commission’s mandate by ensuring that qualified salespersons possess the necessary knowledge and can act as another line of defense in the industry’s AML/CFT regime

The Commission’s revised guidebook and examination removed references to bonds products, which are considered outside of the scope of the examination requirements. This change aligns with recent market & regulatory insights, ensuring the examination remains relevant and focused on products actively marketed in the local insurance market Since the revisions in October, the Commission has not observed a significant impact in the examination results Candidate success rates have remained consistent in comparison to previous years The Commission continues to monitor examination performance to ensure that the guidebook and examination process remains fair, comprehensive, and aligned with industry standards.

The Commission hosted its second annual Salesperson Refresher Training Course on December 10-11, 2024, and December 16, 2024. The training aims to update attendees on the Commission’s regulatory objectives, the legislative framework, and provide updates on anti-money laundering efforts in The Bahamas. Participants were provided with an overview of their functions as prescribed by legislation, information on active investigations, risk mitigation strategies, and guidance on reputable behavior and changes to the Salesperson Examination The Commission liaised with the Financial Intelligence Unit, the Legal Department and the Policies & Practices Department to provide comprehensive updates on our legal & regulatory compliance framework. This seminar was attended by industry professionals, including management and salespersons from insurers and intermediaries

Key highlights of the training included:

1.Salespersons’ Responsibilities: The IMC Unit presented insights into regular processes to ensure that attendees understand their roles and responsibilities.

2.Active Salesperson Investigations: The training discussed ongoing investigations involving salespersons This discussion provides lessons and best practices to enhance professional conduct

3 Updated Salesperson Study Book: Attendees were advised of changes to the study guide, including the AML component.

4.Reputable Salesperson Behavior: Attendees received guidance on professional standards, ethics, and customer service to encourage them to uphold the insurance industry’s positive reputation

The Commission invited attendees to complete a survey to provide feedback on the seminar. This allows the Commission to continuously improve the delivery of future training seminars and dynamically assess the needs of the industry.

ENHANCING SUPERVISION AND OVERSIGHT

PARTNERSHIP WITH AML ANALYTICS

The Commission engaged AML Analytics (AMLA), a leading risk analytics, testing, and validation firm to conduct an AML risk assessment of registered insurers and intermediaries. AML Analytics recently introduced its Online Risk Based Systems (ORBS) which provides innovative risk analytics for reporting and supervision. AMLA surveyed all registered corporate intermediaries and is preparing a report which will contribute to the enhancement of the Commission’s regulatory frameworks and supervisory functions. The Intermediaries and Market Conduct Unit has incorporated the initial findings in its offsite risk assessments

PENSION FUND MANAGEMENT FIRMS AND MEDICAL SERVICE PLANS

Pursuant to Section 3(1)(b)(v) of the Insurance Act, 2005 (the Act) defines long-term insurance business and includes companies in the business of pension fund management

Section 3(1)(c) of the Act states “all other classes of insurance not specified in (a) and (b) above and including but not limited to medical service plans, hospital service plans, health maintenance organizations, prepaid limited health care service plans, dental, optometry and other similar health service plans ”

There are several pension fund management companies in the jurisdiction, none are registered or licensed by the Insurance Commission as long-term insurance businesses In accordance with 2007 findings from the International Organization of Pension Supervisors, the Commission understands that the implementation of a risk-based supervisory framework can be challenging

The regulation of pension fund management has the following advantages for the local industry and consumers:

Protection of Beneficiaries – The establishment and supervision of clear, measurable standards governing investment strategies, risk management, audits can drive compliance and increase confidence and preserve the benefits to beneficiaries.

Deterrence of mismanagement - Effective regulations can provide a safeguard against the misuse of pension contributions

Promotion of transparency – Information disclosures to the Commission and to beneficiaries will enhance the awareness and decision making and provide an accountability mechanism for fund managers.

Reduced potential for excessive risk-taking behaviors.

Improved stability – Rules regarding asset allocation and capital requirements will ensure that pension funds retain sufficient money to meet their obligations to retirees.

Building confidence through standardization of rules and guidelines – A common set of rules, principles and guidelines will ensure that beneficiaries are familiar with their rights and all pension funds will be monitored and assessed against the same standards.

TECHNICAL REPRESENTATIVES

Section 121(8) of the Act addresses the registration of responsible officers, technical representatives and salespersons The Commission is responsible for registering personnel to ensure that industry participants possess the minimum qualifications established by the Commission. There are currently no technical representatives registered by the Commission.

The registration of technical representatives is an important regulatory objective for the following reasons:

Consumer Protection – as insurance products can be difficult to understand, customers rely on technical representatives to understand the policies and act in their best interests.

Market Integrity – Regulations can help to reduce instances of mis-selling, fraud and other unethical practices

Ensuring Competence – Enforcing the minimum standards for education, training, and professional development will ensure that the industry is resilient and all participants in the insurance business possess sufficient knowledge to provide related services.

Addressing Information Asymmetry – Regulating technical representatives is advantageous for consumers due to information asymmetry. Through regulation, the Commission can ensure that there are knowledgeable technical representatives employed by insurance companies and intermediaries

Assisting with Complaints and Dispute Processing – The regulation of technical representatives also allows for an avenue of redress with the appropriate parties.

COMPLAINTS PORTAL

All insurance companies are required to have internal complaints processes. These processes should allow policyholders or beneficiaries to file complaints with an insurer if they are dissatisfied with a claim settlement If a complaint is unable to be resolved in favor of the policyholder or beneficiary, they may file a complaint with the Commission. The complainant is required to make a complaint to the insurance company or intermediary; submit the final complaint letter from the insurer and complete the Commission’s complaint form with all necessary attachments.

The Commission made significant progress in its complaint handling process, improving delivery and accessibility to the public In July 2024, the Insurance Commission launched its new Complaints Portal accessible through the official website. Individuals can efficiently submit complaints for processing. The portal reflects the Commission’s commitment to transparency, accountability, and excellence in its regulatory service to the public The complaints process was initially managed by the Intermediaries & Market Conduct Unit but has since been reallocated to the Commission’s Enforcement Unit

In general, complaints are focused on three general issues in the Bahamian insurance industry:

1 Claims handling – delays in processing claims, disputes over amounts or denial of claims which the policyholder deems legitimate

2 Understanding of policy terms – policyholders may seek the assistance of The Commission in resolving circumstances where the terms of their insurance policy were not clearly explained, or the interpretation of the policy differs between the insurer and the policyholder.

3 Misappropriations and Misrepresentations – complaints arise from alleged misrepresentations, high-pressure sales tactics, or unregistered persons selling insurance

EXAMINATION DEPARTMENT

Effective September 1, 2024, the On-Site Team was formally separated from the Insurance Companies Unit of the Supervision Department to form the Examination Department. The Department is mandated to conduct on-site inspections of its licensees pursuant to Section 69 of the Insurance Act, 2005, and Section 41 of the External Insurance Act, 2009, with the objective of effectively monitoring and ensuring compliance with insurance legislation and guidelines mandated by the Commission On-site examinations are driven by findings of risk assessments and desk-based reviews conducted by the Off-Site Team, Financial Analysts and Intermediaries and Market Conduct Unit, in addition to any other material findings relative to the insurance company or intermediary. The scope of the examinations may include but is not limited to: an assessment of the insurer's corporate governance and board oversight framework, risk management framework, operational effectiveness, financial management, Anti-money Laundering, Counter Terrorism and Proliferation Financing (AML/CFT/PF) compliance

The Examination Department is comprised of the following persons:

Ronique Bastian (On-site Lead Supervisor)

Sasha Albury (Senior Analyst)

Trishawna Kelly (Analyst)

Ryshanda Miller (Analyst)

ROLE OF THE EXAMINATION DEPARTMENT

The role of the Examination Department is to ensure that licensees and registrants of the Commission act in accordance with applicable guidelines, international best practices and the following legislation:

Insurance Act, 2005

External Insurance Act, 2009

Insurance (General) Regulations, 2010

Financial Transactions Reporting Act, 2018

On-site examinations are conducted to ensure that insurers and intermediaries act with integrity and in the best interest of policyholders. Emphasis is placed on assessing the adequacy and effectiveness of a licensee’s corporate governance and risk management frameworks, in addition to its AML/CFT/PF and internal controls, ensuring that weaknesses or vulnerabilities can be detected, managed, and mitigated Through these examinations, the Commission plays a critical role in safeguarding the credibility, stability, and reputation of the insurance sector in The Bahamas.

RISK BASED SUPERVISION

The Commission employs a Risk-Based Supervisory Framework to supervise and monitor insurers and intermediaries Risk-based supervision is a comprehensive, formally structured system that assesses risk within the industry such as liquidity, reinsurance, market, operational, underwriting and investment risks. This Framework enables the Commission to utilize its resources efficiently and effectively by prioritizing the areas of higher risk relative to individual insurers, while taking into account factors such as the Company’s size, market share, risk exposure and the complexity of its business operations On-site examinations help to detect emerging risks and operational vulnerabilities that might not be visible through periodic filings or desk-based assessments alone. These examinations provide valuable insight into the actual practices and behaviors within the licensee, to ascertain a holistic picture of its risk profile.

RISK ASSESSMENTS

Risk assessments of the licensees are conducted, with risk ratings of High, Medium and Low assigned based on the established criteria The frequency of the on-site examinations of the licensee is driven by the assigned risk rating as indicated in the table below.

Licencee Risk Rating Examination Frequency

The frequency of on-site examinations is also dependent on emerging risks or material concerns that may arise by way of desk-based reviews or otherwise

SECTOR RESILIENCE

On-site examinations play a vital role in enhancing the resilience of the insurance sector by identifying weaknesses within individual institutions and ensuring that corrective actions are implemented promptly to prevent localized issues from escalating into broader systemic risks. This proactive intervention strengthens the overall health of the sector and its ability to withstand shocks and/or unexpected events. Examinations also serve as a useful tool for promoting regulatory compliance and market discipline Further, a robust on-site examination program encourages institutions to uphold high standards of governance, transparency and ethical conduct, which in turn fosters trust and confidence in the insurance sector.

2024 ON-SITE EXAMINATION REVIEW

During the last quarter of 2024, two (2) thematic on-site examinations were conducted by the newly established Examination Team. The Companies included a general insurer and intermediary. The key areas assessed included: corporate governance, risk management, Anti-money Laundering, Counter Terrorism and Proliferation Financing (“AML/CFT/PF”) inclusive of Sanctions Screening, internal audit and market conduct Based on the areas assessed, risk ratings were assigned with an overall weighting of High, Medium or Low based on the identified risks Factors such as the Company’s size, market share and complexity of its business operations were also factored in the scoring. The Examination Team will continue to monitor the progress of the Companies assessed as it relates to the implementation of corrective actions to address issues identified during the on-site examinations

ONGOING MONITORING AND FOLLOW-UP

In the key areas assessed during on-site examinations conducted in 2024, there were instances of non-compliance with applicable legislation Based on these findings and observations, recommendations have been formulated to support licensees in meeting their regulatory obligations and to ensure alignment with international best practices.

Key recommendations derived from these examinations include:

Corporate Governance & Compliance Board of Directors should:

Evaluate the performance of the CEO and Senior Management on an annual basis

Ensure that potential conflicts of interest are addressed and managed appropriately.

Licensees are required to notify the ICB of any material changes to Senior Management or other significant organizational changes within thirty (30) days of the change taking effect

Renewal applications and supporting documents should be submitted to the ICB within the stipulated timeframe.

Risk Management & Internal Controls

Insurance Companies and Intermediaries should maintain a comprehensive risk management framework aimed at identifying, managing and monitoring risks to ensure that they are able to withstand unexpected shocks

Establish a robust Internal Audit program to evaluate internal controls and operational efficiency.

Maintain an effective Reinsurance program

Training & Staff Competency

Ensure that all staff and salespersons complete annual AML/CFT/PF training, as prescribed by legislation.

Ensure that staff and agents obtain and maintain current Professional Licenses and Certifications

Policies & Client Documentation

Ensure that policies are implemented to effectively guide internal processes and procedures that align with legislative requirements, guidelines mandated by the ICB as well as international standards

Ensure that policy documents are correctly executed within the prescribed timeframe and that policyholders understand the terms and conditions of their policy.

Ensure that proper Customer Due Diligence (“CDD”) and Know Your Customer (“KYC”) processes have been implemented and adhered to

Ensure that client files are complete and include all required forms and supporting documentation

Ensure that appropriate data protection and retention measures are implemented and enforced.

Information Security

Implement and maintain effective information security controls, inclusive of an effective Business Continuity Plan (“BCP”)

Ensure that staff is given appropriate training in data/cyber security, in an effort to mitigate potential threats and associated risks.

The findings and observations identified during the on-site examinations are monitored on a continual basis inclusive of corrective actions The status of each item is tracked and categorized appropriately, as completed, in progress, or overdue. Follow-up discussions with the licensee’s Principal Representative or key personnel will be conducted to better understand any challenges impeding progress. Where significant deficiencies persist, these matters will be escalated and may be subject to penalties, fines or other enforcement actions If necessary, a follow-up on-site visit may be conducted to assess the licensee’s corrective actions and determine whether enforcement measures should be considered

TRAINING

Members of the Examination Team have been actively engaged in training and have obtained certifications in key areas such as: Financial Crime, Compliance and Risk Management, Reinsurance, Regulatory Strategy and Common Reporting Standards. Training will expand to include Insurtech and emerging risk areas such as: Cybersecurity, Environmental, Social, and Governance (ESG), Artificial Intelligence (AI), and Diversity, Equity, and Inclusion (DEI) Further, training will be conducted on an ongoing basis to ensure that all team members are adequately equipped with the knowledge and resources needed to effectively assess licensees and registrants of the Commission.

Additionally, it is important to note that the Commission has made a significant investment in software to enhance the efficiency of the examination processes and to further equip the Team with the necessary tools.

STRENGTHENING ON-SITE EXAMINATIONS TO ADDRESS EMERGING RISK AREAS

The Insurance industry in The Bahamas is undergoing a transformative shift driven by emerging risks such as, Cybersecurity, Environmental, Social, and Governance (ESG), Artificial Intelligence (AI), and Diversity, Equity, and Inclusion (DEI). These domains are not only reshaping operational and risk management practices but are also becoming critical indicators of institutional resilience and long-term sustainability

Therefore, in recognition of the dynamic risk environment, the Examination Department will adopt a structured approach to enhance the effectiveness of its on-site examination framework which will enhance regulatory oversight, support prudent risk management, and foster a more secure, innovative, and inclusive insurance sector aligned with international best practices.

The integration of Cybersecurity, Environmental, Social, and Governance (ESG) considerations, Artificial Intelligence (AI) ethics, and Diversity, Equity, and Inclusion (DEI) into future on-site examinations is fully aligned with the Insurance Act, 2005, which mandates the Insurance Commission of The Bahamas to ensure effective supervision, promote sound risk management practices, and safeguard policyholder interests. Section 4 of the Act, empowers the Commission to promote the soundness of the financial system and requires that licensees operate with prudence and integrity Additionally, with the incorporation of emerging risks into on-site assessments, the ICB further ensures that its licensees and registrants are not only compliant with regulatory standards but are also building resilient, future-ready operational systems. This proactive approach will help to address modern threats such as data breaches, environmental risks, algorithmic bias, and social inequity, while enhancing industry resilience and reinforcing The Bahamas' position as a progressive, well-regulated insurance jurisdiction

LEGAL UNIT

The function of the Legal Unit (“Unit”) is to provide comprehensive legal advice to the Insurance Commission of The Bahamas (“Commission”), ensuring adherence with applicable legislative frameworks; and enforcement of the laws administered by the Commission, thereby upholding regulatory compliance and fortifying the legal integrity of the insurance industry

The Unit is primarily responsible for reviewing, formulating, and amending legislation administered by the Commission, with a particular focus on advancing its supervisory and regulatory framework governing the Bahamian insurance sector. The Unit also plays an integral role in the development and assessment of the Commission’s guidelines and policies, ensuring consistency with the statutory mandates under the Commission’s purview

LEGISLATIVE DEVELOPMENT

The Commission has conducted a rigorous and comprehensive review of the legislative framework governing its mandate This review exposed systemic deficiencies and critical legislative gaps that require urgent rectification Foremost, is the misalignment in the requirements for the renewal of registration by registrants under the Commission’s jurisdiction, which undermines regulatory consistency and operational integrity. Additionally, while the Insurance Act, Ch 347, ostensibly provides for the regulation of medical and health service providers, it is devoid of an adequate supervisory framework to ensure their compliance and accountability This deficiency is mirrored in the regulation of insurance consultants, further exacerbating the vulnerabilities within the regime.

The current legislative framework falls critically and significantly short of international best practices, including the Insurance Core Principles articulated by the International Association of Insurance Supervisors Such deficiencies jeopardize the Commission’s ability to effectively discharge its statutory responsibilities and erodes The Bahamas’ credibility and competitiveness within the global regulatory environment.

Recognizing the fundamental importance of a robust and modern legal framework, the Commission continues its advancement of a comprehensive legislative reform agenda Central to this initiative is the amalgamation and modernization of the legislative regime to eliminate fragmentation, enhance coherence, and ensure alignment with global regulatory standards. These reforms are indispensable to establishing a forward looking resilient, and progressive framework that fortifies the Commission’s regulatory oversight, bolsters jurisdictional credibility, and ensures the Commission’s effectiveness in safeguarding the interests of stakeholders

GUIDELINE DEVELOPMENT

The Commission, in 2024, developed and disseminated for consultation the Road Traffic (Amendment) Act, 2024 Guidelines (“Guidelines”), to ensure that registrants fully understand and adapt to the significant changes introduced by the Road Traffic (Amendment) Act, 2024 (“Act”). The Guidelines, which require registrants to establish and maintain comprehensive policies and procedures, will ensure compliance with the provisions of the Act Specifically, the Guidelines mandate the implementation of processes for cancellations, record-keeping protocols, verification of cancellation information, and robust compliance monitoring procedures These measures are designed to strengthen operational transparency, mitigate risks, and enhance accountability across the insurance industry in The Bahamas.

The implementation of the Guidelines will represent a pivotal step in aligning the practices of the industry with legislative expectations

DEVELOPMENT AND IMPLEMENTATION OF INTERNAL POLICIES

In collaboration with the Human Resources Department, the Unit successfully developed and implemented three key internal policies to enhance operational efficiency, promote ethical standards, and support its employees These policies are:

Remote Work Policy - Designed to formalize the arrangements for remote work within the Commission, this policy provides a structured regime for employees to perform their duties remotely. It sets forth the expectations, responsibilities, and compliance measures required to maintain productivity, date protection, and alignment with the Commission’s objectives.

Business Conduct and Ethics Code - This code serves as a cornerstone for fostering a culture of integrity and accountability within the Commission. It prescribes the ethical standards and behavioral guidelines that employees are required to adhere to while performing their professional duties and conducting the business of the Commission. The code reinforces the Commission’s commitment to business and ethical governance

Cafeteria Policy - This policy establishes the framework for regulating and administering employee access to the subsidized cafeteria program. It outlines procedural requirements and compliance standards to ensure equitable and efficient utilization of this benefit.

These policies reflect the Commission’s dedication to creating a supportive, transparent, and accountable working environment while upholding its operational and ethical standards.

POLICIES, RESEARCH AND PRACTICES UNIT

The Policies, Research, and Practices (PRP) Unit plays a crucial role in ensuring the regulation and development of the Bahamian insurance sector Tasked with shaping comprehensive policies, conducting research, and fostering international cooperation, the PRP Unit ensures the sector remains compliant with both local legislation and international best practices This report provides an overview of the Unit’s activities, initiatives, and contributions to the Commission’s regulatory framework during the past year

INTERNATIONAL ENGAGEMENT AND COLLABORATION

The Unit actively engages with global counterparts to stay abreast of emerging regulatory trends and ensure the Bahamian insurance sector remains competitive and resilient Key collaborations include:

International Associations: The Unit maintains strong relationships with the International Association of Insurance Supervisors (IAIS), the Financial Action Task Force (FATF), the Caribbean Financial Action Task Force (CFATF), and the Caribbean Association of Insurance Regulators (CAIR) The Commission is a member of CAIR’s Climate Risk Change working group These partnerships provide valuable insights into global regulatory standards and contribute to the strengthening of local regulations.

Group of Financial Service Regulators (GFSR): The Unit participated in multiple Joint Guidance Working Groups (JGWG) under the GFSR, contributing to the development of important guidance on proliferation financing, politically exposed persons (PEPs), and self-regulatory status for the Bahamas Association of Compliance Officers (BACO).

RESEARCH AND BENCHMARKING INITIATIVES

The Unit places significant emphasis on research and benchmarking to continuously refine the Commission’s regulatory framework Key initiatives this past year included:

Unit-Linked Insurance Products Review: A comparative study of the regulatory frameworks in Bermuda, India, and the United Kingdom to assess policy improvements for the jurisdiction

A Fast-Tracked Pre-Authorization Process for Captive Insurance Cells: An analysis of Guernsey Financial Services Commission’s process to enhance the efficiency of approving Segregated Account Companies.

Emerging Technology Benchmarking: Research into the regulation of blockchain technology across ten jurisdictions, with a focus on the regulatory sandboxes of Bermuda and Singapore

Additional research projects included benchmarking remote work policies, evaluating micro-credential programs in specialized areas such as data analytics and cybersecurity, and strengthening the Commission’s internal audit functions.

SUBSCRIPTIONS MANAGEMENT

The PRP Unit is responsible for managing essential subscriptions that support the Commission’s regulatory and supervisory functions. These include: World Check – Used for conducting Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, with over 4 million records for financial crime risk identification.

A M Best – Provides analysis of the financial strength and creditworthiness of insurance companies The Unit ensures staff have access to the most current reports.

FSI Connect – An e-learning platform offering specialized training for financial regulation and supervision, managed by the Unit to maintain staff engagement.

LOMA – The Unit oversees educational programs within the insurance industry, facilitating access for both Commission staff and external candidates

POLICIES, GUIDELINES, AND REGULATORY INITIATIVES

The Unit’s policy development efforts focused on emerging challenges within the insurance sector, with key initiatives in the following areas:

Cyber Risk and Operational Resilience: The Unit has laid the foundation for developing a regulatory framework to address cyber risks and promote operational resilience. This includes identifying best practices in cybersecurity, IT risk management, and business continuity. The Unit has also worked to facilitate communication with insurers regarding emerging cyber threats.

Climate Risk Management: In response to global concerns about climate change, the Unit is guiding the insurance industry to adopt risk management practices that address the financial risks posed by climate change Earlier in the year, the Unit participated in the CARTAC Climate Risk and Financial Stability Workshop to enhance industry preparedness for climate-related risks

International Cooperation and Global Standards: The Unit has contributed to the IAIS’ Climate Risk Consultation Package and begun beneficial research on the treatment of pensions by insurance regulators Additionally, the Unit has been involved in the review of Anti-Money Laundering (AML), Counter Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF) guidelines to ensure compliance with evolving global standards.

COMPLIANCE WITH UNITED NATIONS SECURITY COUNCIL

SANCTIONS

SCREENING FILINGS

The Unit has also been diligent in upholding international financial crime prevention standards. As of November 30, 2024, twenty-one (21) notices were issued to long-term insurers regarding the United Nations Security Council (UNSC) sanction lists. These notices were issued by the National Identified Risk Framework Coordinator’s (NIRFC) request They align with the International Obligations (Economic and Ancillary Measures) Amendment Act (IOEAMA), 2018, which mandates compliance with UNSC and unilateral sanctions. These notices also align with the reporting obligations outlined in the AntiTerrorism (Amendment) Act, 2019.

The Unit plays a crucial role in disseminating sanctioned entities and individuals to insurers, issuing notices as directed by the NIRFC, and posting these notices publicly. The Unit records responses and applies penalties for non-compliance Compliance among insurers remains high, with most companies submitting required declarations.

NATIONAL RISK ASSESSMENT (NRA)

In 2022, the Bahamian Government commenced the process of updating its National Risk Assessment (NRA) for AML/CFT/CPF. The NRA was first completed in 2015/2016 with the objective of evaluating current AML/CFT/CPF risks, threats, and vulnerabilities in the country

As part of this assessment, the Commission conducted a comprehensive review of the insurance sector to identify AML/CFT/CPF vulnerabilities, given the size, operations, customer base, and product offerings of insurance companies.

The insurance industry’s assessment and the overall level of vulnerability for the country was finalized in December 2024 The insurance sector was assessed as having a medium risk for AML/CFT/CPF.

AML/CFT/CPF ONSITE EXAMINATIONS

The Commission’s AML/CFT/CPF strategy mandates the monitoring and examination of insurers to ensure their compliance with local AML/CFT/CPF laws and regulations. As of June 30, 2024, the submission deadline for most examinations, a total of fourteen (14) examinations were submitted by external auditors and insurance companies, in cases where an off-site examination was conducted The tables below show that as of November 30, 2024, all on-site examinations (OSE) required have been conducted and submitted to the Commission.

As of the current reporting period, five (5) domestic long-term insurance companies have been granted waivers exempting them from engaging an external auditor for the on-site examination of their AML/CFT/CPF policies, systems, and controls. Instead, these companies have been authorized to conduct self-examinations (off-site) overseen by a senior staff member.

To date, all sixteen (16) OSEs have been analyzed As of December 2024, the Unit has begun issuing letters to licensees that highlight deficiencies that need to be addressed and include an action plan for remediation. The Unit is working on creating remedial action logs to track the remediation of the deficiencies.

ONLINE RISK-BASED SYSTEM (ORBS)

To enhance the Commission’s risk-based strategy for monitoring and assessing AML/CFT/CPF risks among insurers, the Commission has implemented AML Analytics’ Online Risk-Based System (ORBS) This implementation was spearheaded by the PRP Unit

After several weeks of testing by the Commission’s working group, the system successfully went live in September 2024 All long-term and general insurers were provided with login credentials to access the system and begin completing an internally developed AML/CFT/CPF risk assessment questionnaire This initiative strengthens the Commission’s ability to assess and manage financial crime risks within the insurance sector, contributing to the overall regulatory framework.

INTERNAL COLLABORATIONS

The Unit has undertaken several collaborative projects in conjunction with other units with the Commission to address current and future regulatory or staffing needs. Notable projects include:

Remote Work Policy: In collaboration with the Human Resources Unit, the PRP Unit has assisted in the development of a policy that incorporates comparative studies of domestic and international best practices for managing hybrid and remote workforces.

Micro-Credential Programs: The Unit has investigated opportunities for specialized training in critical areas such as data analytics, cybersecurity, and sustainability to support regulatory responsibilities

Workforce Skills Assessment: The Unit has collaborated with the Supervision Unit to assess the qualifications and skills required within the insurance industry to ensure a well-trained and capable workforce.

CONCLUSION

During 2024 the Unit has demonstrated its commitment to enhancing the regulatory framework for the insurance industry in The Bahamas. Through international collaboration, extensive research, and policy development, the Unit has ensured that the Commission remains responsive to both local and global challenges. Moving forward, the Unit will continue to focus on emerging risks, enhance regulatory practices, and maintain a strong connection to global regulatory trends to foster a stable and resilience insurance sector

OPERATIONS UNIT

In 2024, the Operations Unit made significant progress in advancing infrastructure and operational initiatives to support the Commission's growth Our primary goals centered on enhancing facilities management, promoting sustainability, and identifying strategic opportunities for future expansion. Despite logistical challenges, the Unit maintained momentum, ensuring that all activities aligned with the Commission's overarching strategic objectives

KEY ACHIEVEMENTS

OFFICE EXPANSION

We completed the construction of two additional office spaces within our leased premises These spaces now accommodate the Human Resources Department and the Communication, Business Intelligence, and Consumer Awareness Unit This expansion addressed immediate workspace needs and fostered a collaborative and efficient working environment.

BASEMENT RENOVATION

The basement was extensively refurbished to house the Registry & Document Management Unit. Renovations included redesigned workflows, installation of modern workstations, high-speed fiber optic connectivity, and structural enhancements. Although minor electrical work remains, the space is already in use by temporary staff

ELECTRIC VEHICLE (EV) INTEGRATION

To advance our sustainability goals, the Commission acquired a second electric vehicle and installed a dedicated EV charging station at the primary location Protective infrastructure was added to ensure security, supporting the Commission’s environmental stewardship by reducing carbon emissions.

STAFF UNIFORM PROGRAM

A new uniform program was launched, providing all employees with professional attire featuring the Commission’s branding A comprehensive Staff Uniform Policy was finalized to guide distribution, maintenance, and usage, reinforcing organizational identity and professionalism

STRATEGIC INFRASTRUCTURE PROJECTS

EXPANSION PLANNING

Recognizing future growth needs, the Operations Unit evaluated several potential sites for additional office space Properties assessed included Prospect Ridge, Western New Providence Commercial Centre, Lyford Cay House, One West Plaza, and Gilingham House Each site was evaluated based on cost, location, available amenities, scalability, and operational compatibility.

SITE RECOMMENDATION

Following detailed analysis, Prospect Ridge was identified as the most suitable location for future expansion Despite its higher rental cost, the property’s strategic location, comprehensive amenities, and long-term scalability make it the best option for supporting the Commission’s growth trajectory

CHALLENGES AND MITIGATION STRATEGIES

VENDOR AND SUPPLY CHAIN

DELAYS

Shipment delays and limited vendor availability impacted project timelines. In response, we broadened our vendor network, initiated earlier procurement processes, and developed contingency plans to mitigate potential delays.

APPROVAL PROCESSES

Securing infrastructure approvals, particularly for the EV charging station and basement renovations, proved time-consuming We addressed this by engaging stakeholders early, preparing detailed submissions, and maintaining regular follow-up communication to expedite approvals.

COST MANAGEMENT

Rising project costs, particularly for EV infrastructure and office renovations, were managed through strategic cost-sharing proposals, value engineering, and active vendor negotiations to maintain budget discipline

OUTLOOK FOR 2025

Looking ahead, the Operations Unit will focus on further strengthening operational efficiency, expanding sustainable initiatives, and supporting infrastructure growth. Key priorities include:

Fully operationalizing the Registry & Document Management Unit

Finalizing and executing lease agreements for new office space

Expanding the electric vehicle fleet to further reduce the Commission's carbon footprint.

Enhancing vendor management practices for improved service delivery

Strengthening interdepartmental collaboration to drive innovation and operational excellence.

Through strategic planning, adaptability, and proactive leadership, the Operations Unit has built a strong foundation for the Commission's continued success. As we move into 2025, we remain committed to delivering operational excellence, enhancing service delivery, and supporting sustainable development initiatives.

REGISTRY & DOCUMENT MANAGEMENT UNIT

The vision of the R&DM Unit was framed to ensure the establishment of a functionally adequate, comprehensive and advanced records and document management system, that would meet the needs of all staff levels, by maintaining and preserving the data assets of the Commission, physically and digitally.

In 2010, the Commission launched its first digitized document management system which was upgraded in 2020 Since then, the need for a more agile system became urgent, in addition to an organized focus on its physical data assets.

Commencing in the mid-summer of 2024, numerous e-solutions were investigated and reviewed, with a final determination being made to commission a bespoke management system through a company that currently provides other digital services to the ICB This entity conducted a study of the top global records and document management systems and demonstrated their ability to provide the same in a SharePoint environment.

Intensive work continues in the development of the project plan, which was launched early this year (2025) Notwithstanding the very intensive and wide scope of work, the Commission’s goal is to enjoy a scalable and integrated system that:

Automates the documentation/filing of its regulatory business and administrative processes and workflows, through AI technology

Provides users with reliable access to versioned data through simple and advance searches

Connects with other electronic applications in the provision of quality reporting and predictive analysis

Accommodates continuous validation of processes to assist in risk mitigation

Accomplishing the above requires targeted training, which began at a managerial level in August, when the Deputy Manager of the R&DMU attended the National Association of Government Archives and Records Administrators (NAGARA) in Atlanta, GA. Commencing October 15, 2024, the Unit was fully staffed with both junior and a seasoned document management specialist, who all participated in a 20-hour introductory course that was facilitated in-house by The Bahamas Institute of Financial Services Concentrated training will continue into the new year per the Commission’s objectives in developing its human resources through certifications and other educational pursuits.

The Unit will continue to align its development and information governance with ISO 1589 and parts related thereto

INFORMATION TECHNOLOGY UNIT

DATA SECURITY & CYBERSECURITY

ENHANCEMENTS KEY ACHIEVEMENTS FOR 2024

The Commission deployed Secure PIN Printing across the organization to enhance document confidentiality and reduce waste by holding print jobs in a secure queue until authenticated by a user PIN. It also implemented Veeam Backup Solutions, establishing onsite, cloud, and offsite backups for Microsoft 365 data and on-premises infrastructure to ensure robust disaster recovery and business continuity. The Commission strengthens its cybersecurity through several upgrades, including enforcing Multi-Factor Authentication (MFA) organization-wide, implementing Sophos Managed Detection and Response (MDR) for real-time threat monitoring and remediation, restricting USB storage access via Group Policy to prevent unauthorized data transfers, and deploying firewall updates with geo-blocking and enhanced threat content filtering. Additionally, the Commission introduced mandatory security awareness training focused on phishing prevention

IT INFRASTRUCTURE MODERNIZATION

The Commission upgraded its network by transitioning from outsourced infrastructure to in-house management of routers, switches, and wireless access points. The Commission expanded its Wi-Fi coverage, and modernize technologies such as Wi-Fi 6 and 5GHz were prioritized to improve connectivity and speed The aging 2012 domain controller server was decommissioned, with a full migration completed to synchronize 2019 domain controllers. The Microsoft 365 tenant was overhauled to enhance security and performance, and Azure AD Sync (ADSync) was implemented to streamline user authentication and identity management across the hybrid environment Additionally, a new helpdesk ticketing system was launched, automating ticket creation and status updates via email to provide seamless issue tracking

BUSINESS CONTINUITY PLANNING (BCP) AND DISASTER RECOVERY (DR)

The Commission established a fully operational Disaster Recovery (DR) site to ensure organizational resilience during major disruptions. Successful Business Continuity Plan (BCP) and DR tests were conducted, validating the ability to access critical resources remotely through VPN and SharePoint. Softphone applications and headsets were deployed to maintain uninterrupted communication during emergencies, while offsite backups for all critical systems were implemented to safeguard data against potential onsite failures

PHYSICAL SECURITY ENHANCEMENTS

The Commission installed modern security cameras and a new Network Video Recorder (NVR) to provide comprehensive surveillance and improve monitoring capabilities. The Commission installed a Ring camera system at the office entrance to enhance physical security.

END-USER SUPPORT & ONBOARDING

The Commission provided comprehensive IT support to maintain smooth day-to-day operations and deliver a seamless user experience. New staff members were onboarded with fully configured laptops, security training, and access to the necessary tools and resources Efforts to replace outdated laptops continued, improving productivity and user satisfaction across the organization

COMMUNITY ENGAGEMENT

The Commission donated 16 fully configured PCs and monitors to the Simpson Penn and Willie Mae Pratt schools. Each PC was equipped with essential software, secured with appropriate settings, and integrated into the schools’ networks to ensure they were ready for immediate educational use.

BASEMENT INFRASTRUCTURE DEVELOPMENT

The Commission fully equipped its basement workspaces with phones, desk scanners, a multi-function printer, fiber-uplinked switches, and access points to provide seamless connectivity

COMMUNICATION SYSTEM OVERHAUL

The Commission migrated to Aliv desk phones and softphone applications, retiring its outsourced legacy systems

EMAIL & APPLICATION IMPROVEMENTS

The Commission migrated all mailboxes from Gmail to Microsoft 365 to enhance security and integration. Additionally, Sage 100 was deployed, providing the finance team with seamless access to essential tools.

IT DEPARTMENT GROWTH

The IT department expanded this year with the addition of a System Support Engineer, strengthening the team’s capacity to manage increasing workloads and deliver improved support. This strategic growth has enhanced response times, enabled greater specialization, and elevated overall service delivery, positioning the department to effectively meet future challenges

The Commission successfully configured and tested VPN access to support remote operations Additionally, the Commission integrated Microsoft Intune to manage mobile devices and enhance data security

PROFESSIONAL DEVELOPMENT

The Commission attended the CIRT-BS MITRE CISA Conference and Workshop to gain valuable insights into modern cybersecurity strategies, threat intelligence, and frameworks such as MITRE ATT&CK Participation in the workshop strengthened the team’s expertise and fostered collaboration with industry professionals, enhancing the organization’s ability to defend against evolving cyber threats

The Commission also participated in the virtual Microsoft Ignite 2024, Microsoft’s flagship event, to stay updated on the latest developments in Azure, Microsoft 365, and other advanced technologies The sessions offered valuable insights on leveraging these tools to drive innovation and improve organizational efficiency.

In 2024, the IT Department achieved significant milestones in cybersecurity, infrastructure modernization, disaster recovery, physical security, and user support. The department also grew with the addition of a System Support Engineer, leading to more efficient operations and better service delivery Attending the CIRT-BS MITRE CISA Conference and Workshop and Virtual Microsoft Ignite 2024 provided vital knowledge, insights, and collaboration opportunities to stay ahead of evolving IT and cybersecurity trends. Additionally, the configuration and donation of 16 PCs to Simpson Penn and Willie Mae Pratt schools exemplify our commitment to community engagement. With the establishment of a fully operational DR site, revamped Microsoft 365 tenant, new surveillance systems, and expanded IT team, we are stronger than ever to support the organization’s mission with secure, innovative IT services

FINANCE UNIT

The Finance Department plays a pivotal role in supporting the strategic objectives of the organization by ensuring accurate financial management, compliance, and reporting. During the year, the department continued to uphold its commitment to excellence by maintaining efficient financial operations, fostering collaboration with professionals dedicated to distinct but complementary functions, the department worked cohesively to achieve its monthly targets, demonstrating resilience and adaptability in the face of evolving organizational needs.

PREPARATION OF THE 2024 AUDITED FINANCIAL STATEMENTS

The audited financial statements for the year ended December 31, 2024, were prepared in accordance with International Financial Reporting Standards (IFRS), reinforcing the Commission’s commitment to transparency, accountability, and strong financial stewardship Throughout the year, the Finance Department remained focused and delivered the required schedules and supporting documentation in a timely manner to facilitate a smooth and efficient audit. The audit was conducted by Deloitte & Touche Chartered Accountants, who issued an unqualified opinion on the financial statements, confirming that they present fairly, in all material respects, the financial position and performance of the Commission Key improvements implemented during the year - such as the implementation of an accounting system, SAGE 100, automation of the requisition process and the in-house preparation of the Commission’s monthly management accounts and annual financial statements also contributed to the efficiency and quality of the financial reporting process These audited statements provide stakeholders with a clear and accurate account of the Commission’s financial activities for 2024

BUDGET PERFORMANCE AND FINANCIAL STEWARDSHIP

In 2024, the Commission demonstrated strong financial stewardship through disciplined budget management and a continued focus on aligning expenditures with strategic objectives. Total actual expenditure amounted to $7,476,102, reflecting an unfavorable variance of 24.87% against the approved budget. This variance was primarily driven by higher costs in salaries, wages, and employee benefits, resulting from an expansion in the Commission’s staff complement to support its growing operational and regulatory responsibilities Despite the variance, the increase in personnel investment reflects the Commission’s commitment to strengthening capacity and enhancing service delivery On the revenue side, collections totaled $9,652,600, exceeding projections by 10.54%. This favorable outcome was largely attributed to higher receipts from the Share of Premium Taxes, reflecting increased gross premiums collected from the Insurance Industry.

Together, these results highlight the Commission’s ongoing commitment to sound financial management, capacity building, and the effective delivery of its regulatory functions The Finance Department also strengthened internal controls, enhanced forecasting practices, and improved financial reporting timelines. These efforts reflect the Commission’s ongoing commitment to transparency, accountability, and the efficient use of public resources.

HIGHLIGHTS OF COST OPTIMIZATION

In 2024, the Commission undertook several cost optimization initiatives aimed at enhancing operational efficiency and ensuring value for money. Key measures included the renegotiation of service contracts, consolidation of technology platforms to reduce maintenance costs, and tighter controls over discretionary spending Additionally, the implementation of digital workflows and process automation reduced reliance on manual procedures, leading to both time and cost savings. These efforts contributed to a more efficient allocation of resources, allowing the Commission to manage rising operational demands while maintaining financial discipline.

TRANSPARENCY AND FINANCIAL CONTROLS

The Commission remains steadfast in its commitment to transparency and robust financial controls, ensuring the integrity and reliability of its financial reporting. Throughout 2024, the Finance Department continued to adhere to established best practices in financial management, including regular audits, comprehensive financial reporting, and the implementation of internal controls to safeguard public resources All transactions were documented and reviewed in accordance with the highest standards of accountability Furthermore, the Commission strengthened its financial oversight by enhancing risk management frameworks and introducing more rigorous approval processes for expenditures. These measures not only promote transparency but also reinforce the Commission's commitment to maintaining trust with stakeholders and ensuring that resources are used efficiently and responsibly

INTERNAL AUDIT UNIT

In 2024, the Internal Audit Unit (IAU) executed a proactive, risk-based audit strategy aligned with the Commission's strategic objectives. The Commission achieved a milestone as the Internal Audit Unit was launched in February 2024 and subsequently chartered by the Board of Commissioners during the month of April 2024 With its mandate clear and Charter in place, the Internal Auditor sought to identify the Commission’s risks associated with its regulatory activities across multiple units. To this end, the Internal Audit Unit created a comprehensive audit plan that covered the most vulnerable regulatory activities based on the risk-assessments identified

Along with performing an advisory role to the Board of Commissioners and Management, key activities included audits of IT security and data privacy, lease and sublease agreements, cafeteria operations, and groundwork for legal and enforcement unit reviews. The IAU also spearheaded migration from legacy-based audit and assurance systems such as the On-site examinations of licensees via the integration of AuditBoard, a cloud-based audit management system, and participated in international development programs (General Audit Minds hosted by the Institute of Internal Auditors Global Body) to benchmark and elevate audit practices within the Commission.

KEY ACCOMPLISHMENTS

INFORMATION TECHNOLOGY AND DATA PRIVACY AUDITS

The IT assessment evaluated the Commission’s infrastructure, data security, business continuity, third-party access controls, and confidentiality. Findings highlighted significant improvements in IT systems, firewall protections using Sophos, and secure printing protocols However, gaps were identified in third-party agreements, such as missing NDAs for ISL Payroll and certain consultants. The assessment recommended formalizing IT and data access policies, expanding staff training, and improving documentation to strengthen overall security and compliance.

AUDIT OF LEASE & PROPOSED SUBLEASE

The review focused on the apportionment of CAM charges and contractual obligations. It identified ambiguous cost allocations, including shared utilities and irregularities in square footage. Internal Audit issued recommendations to clarify lease clauses and strengthen oversight

CAFETERIA AUDIT

The review was conducted to address HR and operational concerns and was subsequently finalized and shared with HR and Legal for reference

AUDITBOARD IMPLEMENTATION

The project was led into the User Acceptance Testing phase, including vendor selection and system configuration. It is expected to enhance audit tracking, enable real-time risk assessments, and support multi-department use, with full rollout anticipated by April 2025

ADVISORY SUPPORT DURING THE ONSITE EXAMINATIONS OF BFG (LICENSEE OF THE COMMISSION)

The review examined the effectiveness of the Internal Audit program in line with best practices. It also assessed the ICB Examinations Team’s evaluation of the Corporate Governance Framework, identifying gaps against established standards. Internal Audit provided recommendations to develop a more comprehensive reporting framework for future examinations

FELLOWSHIP AND PROFESSIONAL DEVELOPMENT

The Internal Audit Unit participated in the NAIC Fellowship Program and engaged in multiple regional training events, including sessions hosted by the Institute of Internal Auditors, Trinidad & Tobago Chapter Staff also contributed as a panelist at K2 Consultancy’s Roundtable Discussion in New York, USA, in October 2024 In September 2024, the unit onboarded a Senior Auditor to strengthen departmental capacity.

2025 OUTLOOK & STRATEGIC PRIORITIES

Internal audit conducted planned audits and reviews across the Legal, Enforcement, and HR units IA implemented additional staff training and CPE programs within the Audit and Risk Management areas Efforts were made to strengthen IT governance and internal SOP policies, while AuditBoard was utilized to enhance risk monitoring and reporting

BUDGET SUMMARY (2025 PROPOSAL)

The Internal Audit Unit completed its annual budget which was submitted to the Audit Committee and subsequently the Board of Commissioners for review and approval The budget takes into consideration the need for expanded coverage and building efficiency in the areas of Audit and Assurance It seeks to expand the unit’s knowledge base through continued professional development programs. Furthermore, it includes the allocation of resources to develop quarterly lunch and learn activities to build and promote an understanding of the role of internal audit not just within the Regulatory environment of the Commission but the ever-expanding role globally of Internal Auditors

The Internal Audit Unit has successfully enhanced its audit processes, improved collaboration with key stakeholders, and adopted a technology-driven approach for improved efficiencies The groundwork laid in 2024 positions the Internal Audit Unit to further support the Commission's mandate of robust insurance supervision and risk management in 2025.

HUMAN RESOURCES DEPARTMENT

The establishment of the Human Resources (HR) Department at the Insurance Commission of The Bahamas (ICB) was identified as a key priority in the findings of the Organizational Capacity Assessment Tool (OCAT), conducted in 2022 The primary objective of the OCAT was to evaluate, identify, and prioritize ICB’s capacity development needs and opportunities for institutional strengthening As a direct outcome, the introduction of an in-house HR department emerged as a strategic initiative, aligning with ICB’s Operations Management Systems, one of the four (4) key domains of the organizational framework

On February 12, 2024, the implementation of an HR department was successfully realized, marking a transformational milestone for ICB and its workforce. Prior to this development, the organization had operated for over 14 years without direct access to an HR professional, creating a gap in HR support and employee engagement. The establishment of an HR department not only addressed this deficiency but also advanced ICB’s strategic priorities, emphasizing:

Employee Well-being Performance Management Professional Development

These priorities were formally integrated into ICB’s strategic framework, with institutional objectives designed to strengthen human capital and organizational effectiveness such as:

Implementing an HR Management Solution tailored to ICB’s operational needs and long-term aspirations

Aligning individual training goals with broader organizational capacity-building initiatives

Optimizing the organizational structure to enhance efficiency and productivity

To ensure a structured approach to HR development, the department’s first major undertaking was a comprehensive HR audit The audit results provided critical insights, guiding recommendations to enhance existing HR practices, introduce new systems, and establish a modern HR function driven by industry-leading policies and best practices. By leveraging emerging HR trends, ICB remains committed to fostering a progressive, supportive, and results-oriented work environment

KEY HR FUNCTIONS REVIEW: FEBRUARY

- DECEMBER 2024

WORKFORCE MANAGEMENT & PLANNING

The period saw a significant increase in the workforce through targeted recruitment efforts across various departments, including the newly established Enforcement and Examinations Units, and the Registry & Document Management Unit. Extensive recruitment and selection processes were conducted in May, leading to eight (8) job offers This was followed by a major onboarding exercise in July, incorporating ten new employees and increasing the staff complement significantly Recruitment efforts continued through September and October to address staffing needs and supported organizational changes. By November the full-time headcount increased further. During this period, staff movements included internal transfers and new hires, impacting departmental composition The department also participated in external career fairs to attract potential talent

HR SYSTEMS & TECHNOLOGY

A key focus was the enhancement of HR technology to improve efficiency. The implementation of a new in-house payroll system was successfully completed in March, ensuring timely compensation processing. Progress was made on the implementation of the Human Resources Information System (HRIS), BambooHR, with data input and system configuration advancing in April and May. The full rollout and implementation of BambooHR was integrated on August 30, 2024

HR POLICY DEVELOPMENT

Significant progress was made in the review and development of key HR policies to provide clear guidelines and support the workforce Ongoing review and necessary addendums to the Employee Handbook were prioritized The Code of Ethics and Business Conduct Policy was in development. The Cafeteria Subsidy Policy was completed, and the Work-From-Home Policy was completed in November. The Employee Assistance/Loan Program policy was also in the process of formalization.

COMPENSATION & BENEFITS

Review and analysis of compensation and benefits programs were ongoing An analysis of the health and life insurance portfolio highlighted potential implications of organizational changes on premiums and employee benefits. Discussions regarding the pension plan agreement commenced with the aim of reducing the vesture period. Preliminary steps were taken to explore the feasibility of an Employee Assistance Program to provide financial support to employees

PERFORMANCE MANAGEMENT

Efforts were directed towards refining the performance management framework. Review and updates to the existing performance management system and tools were prioritized The introduction of a 360-degree evaluation tool for managers was a key development, with presentations to leadership in October and the launch of the survey in November to gather feedback and support leadership development.

TRAINING & DEVELOPMENT

Opportunities for employee growth and development were provided through various avenues Leadership training retreats were held in March Employees attended external conferences and summits throughout the period, covering topics such as HR trends, FinTech regulation, and compliance An analysis of employee professional certifications was conducted in September. The Summer Intern Program was successfully conducted in July, providing valuable experience to students.

EMPLOYEE RELATIONS, WELLNESS AND ENGAGEMENT

Promoting a positive and engaging work environment was consistently addressed. The "Happy Monday" initiative was launched in March to foster synergy and continued throughout the year with various themes and activities Celebrations and awareness campaigns, such as International Women's Day in March, Lupus Awareness in May, Breast Cancer Awareness in October, and Men’s International Day in November were organized. Employee wellness was also supported through initiatives like the health symposium and workshops in November as well as ICB’S Fun Run Walk & Health Fair with Diabetes Awareness at the focal point

RECRUITMENT AND ONBOARDING ANALYTICS: MARCH - DECEMBER 2024

ICB recruitment and onboarding activities between March and December 2024 reveals a significant focus on expanding and restructuring the workforce.

In May 2024, recruitment for vacant and new positions in the Insurance Companies Unit and other areas was a key focus This effort involved interviewing 30 qualified candidates, shortlisting 13 for a second interview, and extending 8 offers of employment Recruitment activities continued throughout the latter half of the year to fill positions across various units, including the newly formed Enforcement and Examinations Units, and the Registry & Document Management Unit The department also actively sought talent by participating in the University of the Bahamas Annual Career Fair in October, connecting with 110 students In November, a concerted effort was made to strengthen employment offer letters to attract top talent.

The period saw several phases of onboarding. Following the recruitment efforts in May, onboarding for the eight (8) new hires was tentatively scheduled for early July and August In July, an extensive onboarding exercise successfully integrated 10 additional employees into the Executive Office, Legal and Supervision departments, resulting in an increase in the staff complement. Onboarding of new team members continued in November across multiple units, including the Office of the Superintendent, Enforcement Unit, Registry & Document Unit, Legal, Intermediaries & Market Conduct, and Information Technology which was an additional seven (7) new hires increasing the full-time staff headcount compared to the previous month

Analysis of staff movement provides further insight into the impact of recruitment. In April, there were no changes to the permanent staff headcount, but one contractual engagement took effect May also showed no changes in the permanent staff headcount or internal/external movement June saw one new hire and one involuntary separation, with a permanent staff headcount of 39 The onboarding in July increased the staff complement from 37 to 50. However, August headcount decreased by two (2) employees totaling 48. September experienced a significant internal staff movement but also saw the full-time employee headcount increase by two (2) October's staff movement primarily consisted of 4 new hires leading to an 8 5% increase in full-time employees. In November, seven new hires brought the full-time employee headcount to 61 December saw one hire and one involuntary separation, resulting in a total permanent staff count of 60, reflecting an 88% increase from May to December 2024.

ANNUAL STAFF MOVEMENT ANALYSIS: APRIL TO DECEMBER (2024)

COMMUNICATIONS, BUSINESS INTELLIGENCE, AND CONSUMER AWARENESS UNIT

The Communication, Business Intelligence, Consumer Awareness Unit is responsible for overseeing and coordinating the Commission’s communication strategies, business intelligence initiatives, and consumer awareness campaigns The unit develops effective communication plans, leverages data to support regulatory insights, and fosters consumer education to improve transparency and understanding of insurance regulations. Rodney D. Bain serves as the unit’s supervisor, with Dominique Shepherd functioning as the Senior Business Intelligence Analyst.

ROLE OF THE UNIT

The Communication, Business Intelligence, and Consumer Awareness Unit at the Insurance Commission of The Bahamas plays a vital leadership role in shaping the Commission’s public engagement and data-driven decision-making The unit is responsible for developing and implementing communication strategies that clearly and effectively convey regulatory policies and initiatives to both internal and external stakeholders It ensures consistent messaging across all channels while managing the Commission’s public image and media relations A key function of the unit is overseeing business intelligence initiatives, including the collection, analysis, and interpretation of industry data to provide actionable insights for regulatory decision-making and reporting.

The unit also leads consumer awareness efforts by designing and executing public education campaigns to improve understanding of insurance regulations, consumer rights, and responsibilities The execution involves collaboration with external partners, advocacy groups, and industry associations. Additionally, the unit facilitates internal coordination by collaborating closely with other departments to align strategies and ensure effective communication supports broader regulatory objectives. It is also responsible for maintaining the Commission’s website and social media platforms and providing timely updates on events, licensee listings, and other relevant content

Rodney D. Bain serves as the unit’s supervisor, with Dominique Shepherd functioning as the Senior Business Intelligence Analyst. The unit operates with a focus on transparency, strategic communication, and regulatory compliance, ensuring that the Commission remains a trusted, responsive, and forward-looking regulatory authority

HIGHLIGHTS FROM 2024:

FEBRUARY 2024

In February, the Insurance Commission of The Bahamas introduced its new leadership structure, highlighting Dana Munnings-Gray as Acting Superintendent of Insurance and Dr. Keith Major as Chairman of the Board. This initiative included increased social media engagement and featured profiles of Commission members to strengthen public awareness As part of Insurance Month, the Commission actively participated in several industry events Sixteen members attended the Bahamas Insurance Association (BIA) church service, and the Commission also took part in the BIA Family Fun Day and BIA Awards ceremony, where Acting Superintendent Munnings-Gray delivered a keynote address honoring individuals who earned insurance designations.

Public education was a priority during the month Acting Superintendent Munnings-Gray and Supervisor Rodney Bain appeared on *Bahamas @ Sunrise* to address the challenges and consequences of non-insurance of property, particularly its impact on policyholders while emphasizing the regulator’s role. The Acting Superintendent also spoke at the Bahamas Insurance Brokers Association’s (BIBA) monthly meeting, underscoring the importance of industry-regulator collaboration and the critical role of the insurance sector Both the Acting Superintendent and the Chairman extended their greetings for Insurance Month to the public via social media Additionally, Commission members attended the Insurance Institute of The Bahamas (IIB) Lunch and Learn event under the theme “Managing Change in the Insurance Industry.” The month concluded with the Commission hosting the CEO Forum for Insurance Companies, where the Acting Superintendent and Management Team were formally introduced to more than 20 industry leaders

MARCH 2024

In March, the Insurance Commission of The Bahamas focused on showcasing its regulatory role with an emphasis on consumer awareness and public engagement Key topics highlighted during the month included the complaints process, knowing your policy, and universal life insurance. The Commission also marked a significant milestone by celebrating the retirement of former Superintendent of Insurance Michele C. E. Fields. During the month, Commission members joined representatives from the Bahamas Financial Services Board (BFSB) and industry stakeholders at the CICA 2024 International Conference in Scottsdale, Arizona The conference, centered on captive Insurance, provided a platform for collaboration and the exchange of industry best practices.

Chairman Dr Keith Major, Manager Darrin Rodgers, and Supervisor Rodney Bain represented the Commission at the Royal Fidelity Bahamas Economic Outlook seminar The second CEO Forum for the year was held for insurance intermediaries, introducing the Acting Superintendent and Management Team to more than 30 representatives. Internally, the management team distributed Insurance Commission-branded lapel pins to staff as a symbol of trust, integrity, and accountability.

The Commission also deepened its collaboration with BFSB by contributing an advertisement to the April issue of *Captives* magazine and having the Acting Superintendent serve as a panelist during a joint BFSB/Wealth Briefing discussion Additionally, the contract with AML Analytics was executed to implement the ORBS (Online Risk-Based Systems) framework, a key risk-based supervision tool. The project, led by the CBICA department, is targeting a go-live date in May.

APRIL 2024

In the second quarter of 2024, the Insurance Commission of The Bahamas continued to strengthen its engagement with the industry and the community. President Dashwell E. Flowers and the Executive Team of the GAMA Bahamas International Chapter paid a courtesy call on the Commission and Acting Superintendent Dana L. Munnings-Gray. Their discussions centered on training and development, strengthening industry-regulator relations, and exploring opportunities for cross-organizational collaboration The Acting Superintendent also served as a guest speaker at the Rotary Club of South East Nassau’s weekly meeting, where she shared her professional journey and emphasized her commitment to legislative reforms that address the evolving landscape of insurance and protect against policyholder discrimination.

To further support collaboration with registrants, Acting Superintendent Munnings-Gray conducted a series of courtesy calls with licensed companies in Freeport, Grand Bahama, including Insurance Management, Colina Insurance, BAF Financial, Progressive Insurance, TriStar Insurance, Freeport Insurance, and Pathfinder Insurance. Similar visits were conducted in New Providence to foster stronger partnerships, address concerns, and reinforce compliance with regulatory standards A total of over forty licensees in New Providence, Eleuthera, and Grand Bahama were engaged

In line with its social responsibility initiatives, the Commission awarded a scholarship and donated a laptop to Chinera Grant, a 12th-grade student at St. Anne’s School studying Actuarial Science and a graduate of the BIFS G-12 program The Commission also contributed to Lupus 242 Bahamas and celebrated Administrative Professionals Day by honoring its administrative staff In April, the Universal Life Consumer Awareness Campaign was officially launched in collaboration with the Complaints, Investigations & Enforcement Unit and the Intermediaries & Market Conduct Unit. Two educational videos were produced to help policyholders better understand their contracts The Commission also marked Earth Day by planting sunflower seeds at its office, reinforcing its commitment to sustainability and community engagement

MAY

2024

In the second quarter of 2024, the Insurance Commission of The Bahamas continued to strengthen its engagement with the industry and the community. President Dashwell E. Flowers and the Executive Team of the GAMA Bahamas International Chapter paid a courtesy call on the Commission and Acting Superintendent Dana L Munnings-Gray Their discussions centered on training and development, strengthening industry-regulator relations, and exploring opportunities for cross-organizational collaboration The Acting Superintendent also served as a guest speaker at the Rotary Club of South East Nassau’s weekly meeting, where she shared her professional journey and emphasized her commitment to legislative reforms that address the evolving landscape of insurance and protect against policyholder discrimination

To further support collaboration with registrants, Acting Superintendent Munnings-Gray conducted a series of courtesy calls with licensed companies in Freeport, Grand Bahama, including Insurance Management, Colina Insurance, BAF Financial, Progressive Insurance, TriStar Insurance, Freeport Insurance, and Pathfinder Insurance Similar visits were conducted in New Providence to foster stronger partnerships, address concerns, and reinforce compliance with regulatory standards. A total of over forty licensees in New Providence, Eleuthera, and Grand Bahama were engaged.

In line with its social responsibility initiatives, the Commission awarded a scholarship and donated a laptop to Chinera Grant, a 12th-grade student at St Anne’s School studying Actuarial Science and a graduate of the BIFS G-12 program. The Commission also contributed to Lupus 242 Bahamas and celebrated Administrative Professionals Day by honoring its administrative staff In April, the Universal Life Consumer Awareness Campaign was officially launched in collaboration with the Complaints, Investigations & Enforcement Unit and the Intermediaries & Market Conduct Unit Two educational videos were produced to help policyholders better understand their contracts. The Commission also marked Earth Day by planting sunflower seeds at its office, reinforcing its commitment to sustainability and community engagement.

JUNE 2024

In the third quarter of 2024, the Insurance Commission of The Bahamas continued its active engagement across regional and international platforms Members attended the 42nd Annual Caribbean Insurance Conference hosted by the Insurance Association of the Caribbean (IAC) in Cancún, Mexico, which brought together insurance professionals from nearly 30 countries The Commission also participated in the CFATF 58th Plenary and Working Group Meetings in Trinidad and Tobago, represented by Acting Superintendent Dana L. Munnings-Gray, Commissioner Janique Duvalier-Wilson, Manager Yolande Rolle, and Dr Cassandra Nottage These meetings focused on implementing FATF recommendations to combat money laundering, terrorist financing, and proliferation financing

Domestically, the Acting Superintendent served as keynote speaker at the Insurance Institute of The Bahamas’ (IIB) Luncheon, where she addressed regulatory developments, professional growth, technological change, stakeholder collaboration, and the need to improve insurance accessibility She also participated as a panelist on The Bahamas Financial Services Board’s Ecosystem series, specifically Episode 1 titled *Resilience to Global Economic Fluctuations* Manager Darrin Rodgers contributed to public education efforts with a ZNS interview discussing flood insurance, the importance of reviewing insurance coverage and communicating with insurers during hurricane season

The Commission continued to support national talent and youth development by donating Dakarai Turnquest, the 2024 valedictorian of NGM Major High School, to support his studies in actuarial science. It also contributed to the Blue Waves Swim Club during their participation in the Bahamas Aquatics Federation’s 52nd Swimming Championship On the international stage, Acting Superintendent Munnings-Gray joined a panel at the BFSB’s London Landfall Event, highlighting The Bahamas as a competitive jurisdiction for domiciling financial services. Chairman Dr. Keith Major, Manager Jamell Bodie, and Manager Darrin Rodgers also represented the Commission at the GIICS Seminar and Annual General Meeting in London, engaging with regulators from other jurisdictions focused on international insurance.

In July 2024, the Insurance Commission of The Bahamas introduced several initiatives aimed at strengthening internal capacity, enhancing public outreach, and refining regulatory tools. In collaboration with the Legal Unit and the Intermediaries and Market Conduct Unit, the Commission’s CBICA Unit launched a new Complaints Portal, providing the public with an accessible and efficient platform for submitting insurance-related grievances through the Commission’s website. Manager Darrin Rodgers continued public education efforts on flood insurance during hurricane season, appearing in an Eyewitness News interview to emphasize policy awareness and coverage review

Professional development and industry engagement remained priorities. Raven Storr, Administrative Assistant, attended the IAAP Summit in New York, which focused on training and resources for administrative professionals Deputy Manager Steine L A Ledee Campbell represented the Commission at the NAGARA Annual Conference in Atlanta, Georgia, which addressed government archives and information management Members also attended the GAMA Global - Bahamas Lunch and Learn, themed “Mastering Selling Techniques for Insurance Sales Success.” As part of its onboarding process, the CBICA Unit led orientation sessions for eleven new staff members, integrating them into the Commission's operations and culture

In July, members attended the Central Bank of The Bahamas’ 50th Anniversary Service of Thanksgiving and welcomed representatives of Access Bank PLC during a courtesy call. Superintendent Dana L. Munnings-Gray was featured in an interview with Tom Burroughes for Wealth Briefing and the Family Office Report, where she highlighted the jurisdiction’s strengths and opportunities in wealth and risk management through insurance

The Commission also completed a revision of the Salesperson Examination Guide in partnership with the Intermediaries and Market Conduct Unit and the Policies, Research, and Practices Unit. The updated guide features a foreword from the Superintendent, a new cover, and enhanced content that covers AML/CFT/PF standards. Notably, the 2023 ICB Annual Report was designed and produced internally for the first time, and it was published electronically in July, with hard copies distributed in August

The Insurance Commission of The Bahamas proudly announced the appointment of Dana L. Munnings-Gray as Superintendent of Insurance, effective July 1, 2024 Mrs. Munnings-Gray previously served as Deputy Superintendent from March 1, 2022, to December 4, 2023, and as Acting Superintendent from December 5, 2023, to June 30, 2024 The Commission invites all to join in celebrating this significant milestone in her distinguished career.

AUGUST 2024

In August 2024, the Insurance Commission of The Bahamas continued to expand its outreach and stakeholder engagement while promoting education and regulatory development Chairman Keith Major and Superintendent Dana L Munnings-Gray attended Colina Insurance Limited's 125th Anniversary Reception, where they were pictured with Mrs. Telzena G Coakley, a former Registrar of Insurance, in celebration of Colina’s longstanding contribution to the industry. Manager Yolande Rolle completed the FATF Standards Training Course in Trinidad and Tobago, further strengthening the Commission’s technical capacity in anti-money laundering and counter-financing of terrorism frameworks.

The Commission marked the conclusion of its first Summer Student Program with a farewell event for the inaugural cohort Among the students highlighted and sponsored were Chinera Grant and Matthew Miller, both of whom are pursuing studies in actuarial science. Chinera Grant had previously received a scholarship and laptop from the Commission. Continuing its commitment to community education, the Commission participated in orientation sessions at Gerald Cash Primary School and Doris Johnson High School, where members including the Superintendent spoke to teachers and administrators about the value of insurance, the role of the regulator, the complaints process, and the importance of understanding insurance policies

In regulatory engagement, the Commission hosted representatives from the Bahamas Insurance Association (BIA), the Ministry of Finance, the Ministry of Energy and Transport, and the Road Traffic Board to discuss proposed amendments to the Road Traffic Act As part of this collaboration, the Commission and BIA recommended introducing a second decal for vehicles aimed at helping law enforcement more easily identify insured vehicles and enhancing road safety enforcement.

To broaden its public engagement strategy, the Commission officially launched its TikTok account, targeting a younger, tech-savvy audience The platform features educational ads for Universal Life Insurance, a student highlight video, and a video of the Superintendent discussing employment opportunities, which has garnered over 29,000 views. This initiative reflects the Commission’s commitment to modernizing its communications and connecting with diverse demographics.

SEPTEMBER 2024

September 2024 was a period of significant engagement for the Insurance Commission of The Bahamas, marked by public outreach, industry interaction, and community support. The Superintendent of Insurance, Dana L. Munnings-Gray, was particularly active. Her insights on upcoming legislative updates and their impact on the industry were featured in the September edition of Captive Insurance Times. Superintendent Munnings-Gray also served as a guest speaker at the Alpha Kappa Alpha Sorority, Incorporated, Eta Psi Omega Chapter's P.I.N.K. X Talks Financial Empowerment Seminar on September 18th, where she presented on "How Fearless Women Lead" alongside other panelists. Further emphasizing the Commission's role in education and awareness, the Superintendent presented at the 20th Annual Abaco Business Outlook on September 19th Her presentation, themed "Insuring Sound & Prudent Insurance Practices," focused on the importance of maintaining solid regulatory standards and promoting sound practices to safeguard policyholders and the wider industry. While in Abaco, Superintendent Munnings-Gray, accompanied by Rodney D. Bain, Antonice Blyden, and Trillo Edgecombe, conducted courtesy calls with several licensees on the island This visit marked the Commission's first time in Abaco for such engagements

The Superintendent also spoke to the Kiwanis Club of Nassau A M on "Why Insurance Matters for Every Bahamian," addressing critical points like understanding one's policy, the risks of being underinsured, the intricacies of universal life insurance, and the importance of reading policies and seeking clarification on uncertainties. Internally and within the industry, the Superintendent led two CEO Forums – one for insurance companies and another for insurance intermediaries – where discussions covered legal updates, AML assessment surveys, advancements in the ORBS system, compliance with corporate filings, and updates on examinations These sessions were co-led by other leadership team members and Nick Kinoloch of AML Analytics Superintendent Munnings-Gray also met with the Bahamas Insurance Association's (BIA) Compliance Committee to discuss regulatory updates and best practices and reinforce educational requirements for compliance officers, highlighting the vital role they play as gatekeepers.

Beyond regulatory duties, the Commission actively contributed to the community through several donations, including sponsoring Doris Johnson Senior High School’s Honor Roll Assembly, providing snacks to All Saints Camp, donating a new TV to the Persis Rodgers Home for the Aged, giving back-to-school supplies to the Elizabeth Estates Home and Children's Emergency Hostel, and donating sixteen computers to the Simpson Penn Centre for Boys and Willie Mae Pratt Centre for Girls Social media presence was also maintained, with reports detailing unique impressions, clicks, engagement rates, organic impressions, content interactions, reach, page views, and new followers on LinkedIn and Facebook for the month.

OCTOBER 2024

In the final quarter of 2024, the Insurance Commission of The Bahamas remained focused on professional development, public engagement, regulatory leadership, and disaster preparedness. Superintendent Dana L. Munnings-Gray served as a featured speaker at the 2024 GAMA Bahamas International Conference under the theme “Aligning Insurance Practices for the Future,” where she spoke on the importance of industry collaboration, ongoing professional development, technological advancement through InsurTech, and the future direction of the insurance sector She also participated in the 2024 Caribbean Regional Compliance Association (CRCA) Conference in Sint Maarten, where the Commission served as a proud sponsor. Speaking on the panel *Moving Forward Together*, she addressed innovation in InsurTech, the value of cross-industry collaboration, and elevating the insurance profession

In October, the Commission conducted Disaster Recovery Training in response to the potential landfall of Hurricane Milton. The office was temporarily closed, and staff worked remotely before returning the following day. The Disaster Recovery Team, comprising Superintendent Munnings-Gray, Rodney D Bain, Arthur Barnett, Oseria Gordon, Aanica Scavella, and Jonathan Carey, led the response The experience will inform the creation of a formal disaster recovery checklist and internal guidelines The Commission also took part in the University of The Bahamas’ Annual Job Fair, engaging with students, sharing information about its regulatory role, and highlighting career opportunities.

Further demonstrating its regulatory leadership, Superintendent Munnings-Gray spoke at the ACAMS Bahamas Chapter event, where she detailed the Commission’s role in enforcing AML regulations and advancing effective risk assessment frameworks. She discussed new initiatives aimed at enhancing industry compliance, shared findings from the 2024 risk assessment, and identified areas requiring improvement. She also highlighted ongoing education and training, regulatory updates, and revisions to the salespersons examination to include AML/CFT obligations

In observance of Breast Cancer Awareness Month, the Commission wore pink every Friday in October and invited breast cancer survivors to share their testimonies, reinforcing a culture of awareness and support within the organization.

NOVEMBER 2024

In November 2024, the Insurance Commission of The Bahamas continued its outreach, stakeholder engagement, and public awareness initiatives As a diamond sponsor, the Commission supported the Bahamas AIDS Foundation’s 2024 Red Ribbon Ball, themed *Diamonds and Pearls*, reaffirming its commitment to raising awareness and providing support for individuals affected by HIV/AIDS. The Commission also served as a Silver Sponsor for the InspireHer 2024 Conference, supporting the empowerment of women and girls across The Bahamas

Engagement with key professional associations remained a priority. The Commission welcomed the Executive Board of the Bahamas Association of Compliance Officers (BACO) for a courtesy call with the Superintendent, and Superintendent Dana L. Munnings-Gray later delivered the closing address at BACO Compliance Day 2024, where she provided updates and emphasized the importance of the compliance function She also presented at BICA Accountants’ Week 2024, offering regulatory updates to accounting and finance professionals and highlighting the need for collective efforts in building a resilient, digital financial services sector.

Internationally, Commission members participated in the GIICS Training Seminar at Stationers' Hall in London, exchanging insights with global regulators to enhance international insurance supervision frameworks Locally, Darrin Rodgers and Rodney Bain conducted a workshop for staff of the Financial Intelligence Unit (FIU), detailing the Commission’s regulatory role. The Commission also welcomed members of Ernst and Young Bahamas (EY) for a courtesy call with the Superintendent and management team, reinforcing industry collaboration.

In community and youth engagement, Aanica Scavella, Darrin Rodgers, and Rodney Bain participated in the Gerald Cash Primary School prefect selection and pinning ceremony, with Mr. Bain serving as the keynote speaker. The Commission hosted a wellness and awareness day for staff in recognition of World Diabetes Day, which included health screenings and talks by health companies Superintendent Munnings-Gray shared her journey with diabetes, adding a meaningful and relatable dimension to the initiative To commemorate Diabetes Awareness Month and the Commission’s 15th anniversary, a Fun, Run, Walk, and Health Fair was held, featuring glucometer giveaways, kids' activities, and health vendors. Additionally, the Commission celebrated International Men’s Day by honoring male staff with a day of golf and a dedicated health presentation

In the final month of 2024, the Insurance Commission of The Bahamas remained focused on regulatory engagement, capacity building, and advancing professional standards. Representatives attended the 34th Annual Caribbean Actuarial Association Conference held in Nassau, which emphasized education, professional standards, and networking among regional actuaries. Members also participated in the 2024 BICA Taxation Update Seminar to remain informed on key changes and developments in taxation. Chairman of the Board, Dr. Keith Major, and Manager, Yolande Rolle, represented the Commission at the CFATF's 59th Plenary and Working Group Meetings in Jamaica, which addressed Mutual Evaluation Reports, AML/CFT compliance efforts, and governance updates across the region

The Commission mourned the passing of Mrs. Telzena G. Coakley, a former Registrar of Insurance and Government Insurance Advisor, widely regarded as a trailblazer in the field Superintendent Dana L Munnings-Gray attended her memorial service in recognition of her contributions to the industry Commitment to training remained a priority, with twenty staff members completing a professional development session on International Business Companies (IBCs) and Regular Bahamian Companies conducted by S.T.I. Global Education Ltd. The Commission, in partnership with the Financial Intelligence Unit (FIU), also hosted its 2nd Annual Insurance Professional Refresher Training Seminar under the theme “Navigating the Future: Strengthening the Frontline ” This hybrid-format event targeted a broad range of insurance professionals and reinforced the Commission’s ongoing efforts to build technical capacity across the sector.

At the National Risk Assessment Industry Briefing, Superintendent Munnings-Gray provided a detailed update on the Bahamian insurance sector, including findings from the 2024 AML Analytics risk assessment, key sector risks, AML/CFT/CPF obligations, and guidance on suspicious transaction reporting. The Commission further expanded its global presence by participating in the International Association of Insurance Supervisors (IAIS) Annual Conference in Cape Town, South Africa, which explored the theme *Licence to Operate: The Role of Insurance to Strengthen Societal Resilience* In line with the strengthening of national cybersecurity frameworks, IT Supervisor Jonathan Carey participated in the National Cybersecurity Strategy (NCS) Workshop, contributing to the roadmap for enhancing digital protection measures.

In December, the Commission announced the launch of its inaugural InsurTech Compliance, Innovation, and Regulatory Practices (ICIRP) Course, developed in collaboration with the University of Cambridge and supported by the Bahamas Institute of Financial Services (BIFS) The six-week online course, set to begin on January 25, 2025, is designed to equip regulatory and insurance professionals with the tools to navigate the evolving InsurTech landscape. Additionally, the Commission joined fellow regulators at the Deposit Insurance Corporation’s 25th Anniversary cocktail reception, reaffirming its commitment to sector-wide collaboration and regulatory solidarity

SOCIAL MEDIA ANALYTICS

LINKEDIN

Between February and December 2024, LinkedIn engagement demonstrated consistent growth across multiple key metrics. Total unique impressions rose substantially, beginning at 6,683 in February and peaking at 17,989 in August, reflecting a significant increase in content visibility Correspondingly, total clicks showed notable variation, with a high of 12,824 in May and another peak of 10,132 in November, indicating strong user interaction with posted content during these periods

Organic impressions, representing unpaid reach, expanded steadily from 14,287 in February to a peak of 44,388 in November This trend highlights increasing audience engagement without relying on paid promotion, indicating effective content resonance and expanding organic reach Page views fluctuated monthly but generally increased, with a maximum of 1,020 in August, showing improved visitor activity on the LinkedIn page.

New follower acquisition contributed significantly to overall audience growth, starting at 103 in February and reaching 221 in August, resulting in a cumulative growth of the follower base from 586 to 1,862 by year-end This tripling of followers reflects the success of effective strategies in audience development and content appeal.

Overall, the data highlights a strong upward trajectory in LinkedIn performance, characterized by increasing visibility, engagement, and community growth throughout 2024

FACEBOOK

Between February and December 2024, Facebook engagement displayed variable yet generally positive trends in reach, interactions, and follower growth Total organic reach expanded from 1,347 in February to a peak of 5,327 in August, indicating increased visibility without paid promotion. This growth was accompanied by a notable surge in content interactions, which increased from 151 in February to 801 in September, highlighting stronger audience engagement with posted content

Page visits showed dramatic increases in the latter part of the year, jumping from under 2,000 through September to 24,779 in November, suggesting successful content or campaign-driven traffic spikes. Despite fluctuations in monthly content interactions, new followers steadily accumulated, growing the follower base from 817 in May to 955 by December

The data suggests that strategic content efforts translated into expanded organic reach and heightened user activity on the Facebook page, though some months reflected lower interaction levels. Overall, the platform’s performance indicates sustained growth in audience engagement and community size throughout 2024

TIKTOK

The Insurance Commission of The Bahamas launched its TikTok account in August 2024, marking an expansion into new digital channels Within the initial launch period, the account attracted 549 followers and received 2,482 likes across four videos. Content focused on educational and promotional themes, including Universal Life Insurance advertisements, a student highlight, and a feature interview with the Superintendent of Insurance discussing employment opportunities.

The Superintendent’s video emerged as the top performer, reaching over 29,000 views, reflecting strong audience interest Feedback during the launch phase was overwhelmingly positive, indicating effective engagement with this emerging platform. Detailed monthly analytics for TikTok beyond the launch period are not available, but early indicators suggest the platform shows potential for further growth and outreach.

INDUSTRY AND STAKEHOLDER ENGAGEMENT

FEBRUARY 2 G G S

BIA CHURCH SERVICE AND LUNCHEON

BAHAMAS @ SUNRISE
BIA AWAR

BIBA MONTHLY MEETING

IIB LUNCH

CE COMPANIES

MICHELE C. E. FIELDS' RETIREMENT PARTY

ICB AT CICA 2024
ROYAL FIDELITY BAHAM

ICB DONATES TO CHINARA GRANT GRAND BAHAMA INDUSTRY COURTESY CALL

NEW PROVIDENCE INDUSTRY COURTESY CALL

UNIVERSAL LIFE CAMPAIGN LAUNCH

MAY 2024 HIGHLIGHTS

CENTRAL

BANK’S HARBOUR SIDE CHAT

LUPUS AWARENESS

IIA BAHAMAS CHAPTER 2024 CONFERENCE

CANCER SOCIETY BALL AND DONATION

PRIMARY SCHOOL STUDENT OF THE YEAR DONATION

CAIR 2024 (CARIBBEAN ASSOCIATION OF INSURANCE REGULATORS ANNUAL CONFERENCE)

IIA BAHAMAS CHAPTER 2024 CONFERENCE

IAC ANNUAL CARIBBEAN INSURANCE CONFERENCE

CFATF 58TH PLENARY AND WORKING GROUP MEETINGS

IIB LUN

BFSB ECOSYSTEM - EPISODE 1 "RESILIENCE TO GLOBAL ECONOMIC FLUCTUATIONS"

DONATION TO DAKARAI TURNQUEST

BLUE WAVES SWIM CLUB DONATION

GIICS SEMINAR AND ANNUAL GENERAL MEETING

JULY 2024 HIGHLIGHTS

APPOINTMENT OF SUPERINTENDENT OF INSURANCE

EYEWITNESS INTERVIEW FLOOD INSURANCE

IAAP SUMMIT

NEW COMPLAINTS PORTAL

CENTRAL BANK OF THE BAHAMAS’ 50TH ANNIVERSARY SERVICE OF THANKSGIVING

NAGARA ANNUAL CONFERENCE IN ATLANTA, GEORGIA

GAMA LUNC

WEALTH BRIEFING ARTICLE WITH DANA MUNNINGS-GRAY

COLINA INSURANCE LIMITED'S ANNIVERSARY RECEPTION AUGUST 2024 HIGHLIGHTS

SUPPORTING STUDENTS STUDYING ACTUARY SCIENCE

FATF STANDARDS TRAINING COURSE

MEETING WITH BIA, THE MINISTRY OF FINANCE, THE MINISTRY OF ENERGY AND TRANSPORT, AND THE ROAD TRAFFIC BOARD

GERALD CASH SPEAKING ENGAGEMENT
DORIS JOHNSON SPEAKING ENGAGEMENT

SEPTEMBER EDITION OF CA SEPTEMBER 20

P I N K X TALKS FINANCIAL EMPOWERMENT SEMINAR

DORIS JOHNS

ABACO COURTESY CALLS

KIWANIS CLUB OF NASSAU A

MPLI

ICB DONATIONS - ALL SAINTS C

ICB DONATIONS - ELIZABETH ESTATES HOME AND CHILDREN’S EMERGENCY HOSTEL

ICB DONATIONS - SIMPSON PENN CENTRE FOR BOYS AND WILLIE MAE PRATT CENTRE FOR GIRLS

OCTOBER 2024 HIGHLIGHTS

GAMA BAHAMAS INTERNATIONAL 2024 CONFERENCE

CRCA CONFERE

BREAST CANCER AWARENESS MONTH

NOVEMBER 2024 HIGHLIGHTS

BAHAMAS AIDS FOUNDATION'S 2024 RED RIBBON BALL

RAINING

BACO COU
GIICS TRAINING SEMINAR

COMPLIA

34TH ANNUAL CARIBBEAN ACTUARIAL ASSOCIATION CONFERENCE DECEMBER 2024 HIGHLIGHTS

2ND ANNUAL INSURANCE PROFE TRAINING SEMI TRY BRIEFING

INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS (IAIS) ANNUAL CONFERENCE

NATIONAL CYBERSECURITY STRATEGY (NCS) WORKSHOP

INSURTECH COUR

FINANCIAL STATEMENTS

As of December 31, 2024

Silk Cotton House, Prospect Ridge Road

New Providence - The Bahamas

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Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.