WILLEMSTAD – The Curacao and Bonaire Insurance Association (CBIA) is concerned about the fact that the government will fully fund the new hospital (HNO) through a bond emission at the Dutch Central Bank. In this way, local insurers, banks and pension funds have no chance to invest locally.
The Central Bank stipulated that they are required to invest 60 percent of their premium revenue on the local market. The possibilities for this are limited, says the CBIA. There are no local government debts anymore.
According to the CBIA, the problem of guaranteed interest is also an issue for local life insurers and pension funds: “The interest in individual life and pension insurance has been revised to 3 percent recently. The rate for collective pension insurance lies between 3 and 4 percent. But with many of the individual life insurance policies, there is currently a guaranteed interest rate of 4 per cent. “An insurer cannot go under the interest rate set during the duration of a life insurance. An insurer is responsible, during all this time, to achieve at least the promised interest on investments. These are periods that can last for decades.