By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Insurance Association (BIA) yesterday called for the industry's governing law to be changed because it makes no provision for the independent chairman named by the Minnis administration.

The BIA said it backed the appointment of an independent, non-executive chairman - as intended by the Government - on the grounds of improved corporate governance.

However, it pointed out that paragraph eight, in the first schedule of the Insurance Act 2005, stipulated that the Insurance Commission's top executive, the Superintendent of Insurance, "preside as chairman" at its Board meetings.

Emmanuel Komolafe, the BIA's chairman, yesterday said the situation that has arisen following the Government's Board appointments "reiterates the need to revise the Insurance Act 2005".

"According to the published list of board appointees, a non-executive chairman has been appointed for the Insurance Commission of the Bahamas," he added. "However, the existing legislative and regulatory framework does not make provisions for such an appointment."

Mr Komolafe, though, backed the creation and appointment of a non-executive Insurance Commission chairman as "an essential component of a robust corporate governance structure".

The BIA chairman, a Fellow of the ICSA Governance Institute and certified corporate governance trainer, said this would better split the roles of management and the Board, and provide greater oversight of the Insurance Commission's operations.

He emphasised that his comments were not intended to be personal, either towards Insurance Commission superintendent, Michele Fields, or the Minnis administration's elected chairman, former NIB director, Algernon Cargill.

"There is presently no provision in the Insurance Act 2005 that allows for the appointment or office of an independent/non-executive chairman of the Insurance Commission of the Bahamas," Mr Komolafe and the BIA said.

"The [relevant] sections of the legislation infer that the Superintendent of Insurance (who is, de facto, the chief executive of the Commission) is prima facie the chairman of the Board of Commissioners. It follows, therefore, that the existing legislation concentrates the leadership of the Board and management in the office of the Superintendent without sufficient checks and balances."

They added: "This is one of the numerous points that have been raised by the Bahamas Insurance Association (BIA) since 2010 with a view to ensuring that the Insurance Act is amended accordingly. Specifically, this proposed amendment would ensure the separation of powers between the leadership of the Board and the leadership of executive management.

"The proposed amendments to align the existing governance framework with international best practices has been shared with the Minister of Finance and Minister of Financial Services. The BIA has written to the Minister of Finance to formally advise him of this anomaly, and it is our hope that the Government will seek to address this matter as soon as possible. The Insurance Commission of the Bahamas is responsible for the regulation of the insurance industry in The Bahamas."

The Insurance Commission situation is not the only one where the Minnis administration has run into difficulty with its financial regulatory chairmanship appointments.

It has named Graham Thompson & Co attorney and partner, Robert Adams, as chairman of the Central Bank's Board. However, Tribune Business understands that the chair is always held by the governor, in this case, John Rolle.