Budget Debate: Regulations to be amended to ease process for life insurance companies to invest in corporate debt
KINGSTON, Jamaica — Regulation 47 of the Insurance Regulation is to be simplified to make it easier for life insurance companies to invest in corporate debt.
Under the current interpretation of the regulation, life insurance companies can invest only where multiple prescriptive conditions are fulfilled simultaneously.
“This effectively restricts insurers to publicly-listed, rated and collateralised securities. This de facto exclusion of many otherwise creditworthy domestic issuers constrains insurer investment returns and limits the development of the corporate debt market,” said Finance and Public Service Minister Fayval Williams.
She was speaking Tuesday while opening the 2026/27 Budget Debate at Gordon House.
The finance minister said making it easier for private companies to invest will benefit the economy.
“It creates a meaningful new source of patient, long‑dated local financing under the two phases given projected asset growth that can be deployed into corporate expansion, working capital, and project finance,” she said.
Williams told the House that for many mid‑sized firms and infrastructure projects that face limited access to long‑term bank credit this represents an alternative funding channel with the potential for longer maturities and more competitive pricing.
“To address this we will simplify Regulation 47 so that insurers can invest in corporate debt where either of two objective criteria is met,” said the finance minister.
She explained that the revised framework will permit investment where instruments are secured by adequate collateral and bear fixed interest, or where instruments are issued, secured or guaranteed by a solvent company assessed to be investment-grade by a recognised rating provider.
Williams noted that “This change preserves important safeguards while expanding the investable universe and encouraging a deeper domestic corporate debt market”.