Quantitative Impact Study (QIS)


In 2007 the Central Bank of Trinidad and Tobago (Central Bank) embarked on an initiative to enhance the regulation of the insurance industry through the development of more rigorous prudential criteria. A working group comprising representatives from the Caribbean Actuarial Association (CAA), Association of Trinidad and Tobago Insurance Companies (ATTIC), Institute of Chartered Accountants of Trinidad and Tobago (ICATT) and the Central Bank was therefore established. As a result, four Regulations were developed; the Insurance (Caribbean Policy Premium Method) Regulations, the Insurance (Capital Adequacy) Regulations and the Insurance (Financial Condition Report) Regulations for Long Term Insurance and for General Insurance.


Since 2008, the Central Bank has conducted five QIS’s to assess the magnitude of the new capital requirements and to test the readiness of the life insurance industry’s capabilities of using the Caribbean Policy Premium Method (CPPM). These studies were based on financial year end data for the years 2007, 2008, 2009, 2010 and 2012. Three QIS’s were also conducted on the Financial Condition Report Regulations based on financial year end data for the years 2010, 2011 and 2012, however there was minimal participation from the industry.


In 2013, the Central Bank conducted a QIS in respect of the draft Regulations mentioned earlier using 2012 financial year end data. Following that QIS, and based on further consultation, additional amendments were made to the draft Regulations. As a result, the Central Bank wishes to conduct a QIS on the updated Regulations using a company’s 2015 financial year end data. The relevant draft Regulations, forms and additional guidance for this QIS are as follows:

Valuation of Long Term Insurance Business – Caribbean Policy Premium Method (CPPM)

Insurance (Caribbean Policy Premium Method) Regulations, 2015

Report of the Appointed Actuary - Appendix A

Inspector's Directions

Guidance Document for CPPM


Capital Adequacy Requirements

Insurance (Capital Adequacy) Regulations, 2015 

Guidance document for Capital Adequacy for Insurers

Capital Adequacy Returns for Life Insurance Companies

Capital Adequacy Returns for General Insurance Companies

Capital Adequacy Returns for Composite Insurance Companies


Financial Condition Report (FCR) Requirements

Insurance (Financial Condition Report for Long-Term Insurance) Regulations, 2015

Guidance document for FCR Life Insurers

Insurance (Financial Condition Report for General Insurance) Regulations, 2015

Guidance document for FCR General Insurers