OPINION

Insurance policy needed

Trust in insurance companies and their ability to conduct business in a reliable manner with respect to their customers are two factors that carry great importance in any civilized society. The decision made earlier this week by the government and the country’s insurance regulatory authority to suspend the operating licenses of a number of private insurance companies that did not meet the minimum requirements for liquidity was a very positive development. However, it does raise some questions as to who allowed the firms in question to get away with such undesirable practices for as long as they had in the past. Either way, the issue ought to be laid in the hands of the Justice Ministry, which should launch thorough investigations into any possible breaches of the law by certain businessmen linked to the companies that have now been closed down. Public trust in private insurance is too crucial an issue for this matter to be laid to rest without a proper inquiry.