Frequently Asked Questions (FAQs)
In the world of Insurance there are generally two categories as it relates to Insurance. There is General Insurance which also classified as Property and Casual Insurance (P&C Insurance) or Non-Life insurance Business consist of motor insurance, property insurance including household contents and building contents, various types of liability insurance, indemnity insurance, marine insurance, aviation insurance, bond and fidelity insurance and other insurance relating to covering an array of assets. The other category is Life Insurance which includes but not limited to Ordinary/Whole Life insurance, Term Life Insurance, Endowment, Basic Burial Plan and Annuities.
Put simply, insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or their property, or from liability for damage or injury caused to a third party.
Yes, the insurance sector is a part of the financial system along with the Banks, Credit Unions, Money Lenders, Remittance Services, Pensions Sector.
The insurance and Pensions Sectors are both regulated by the Office of the Supervisor of Insurance and Private Pensions a department under the Ministry of Finance in accordance to the Insurance Act Chapter 251 Revised edition 2020, the Private Pensions Act Revised Edition 2020, The Third Party Motor insurance act, various other acts, regulations and the best practices via the IAIS International Association of Insurance Supervisors Core Principles for Insurance and Private Pensions sector supervision.
- 8 General Insurers – Five (5) full General Insurers, Two (2) composites, One (1) Association of Underwriters
- 3 Life Insurance Companies
- 1 Special License/Captive
The Belize Private Pension Act, Act No. 4 of 2016 came into effect January 1, 2017.
Under the Private Pension Act, registration is required of both the Pension Administrator and the Pension Plan. Both have separate application and registration processes. Pension Administrators can be registered as either Employer or Board of Trustees, and licensed as either a licence financial institution, and specialized pension administrator companies. Belize also
allows for the creation of a Financial Institution Pension Plan which promotes financial inclusion.
As of the first quarter 2023 the total Pension Plan registered is eighteen (18).
They are One hundred and Twenty (120) agents registered.
The breakdown is as follows:
- One (1) Hundred and Twenty (120) Individual Agents
- Five (5) Sub Agents
- Ten (10) Corporate Agents
- Two (2) Brokers