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While Trinidad and Tobago’s insurance industry was affected by a slower economy in 2015, most of the largest insurers remain prof¬itable. Key metrics suggest the industry is resilient, although companies will have to adapt their business models to keep abreast of market developments. At the end of 2015 there were seven active life insurance companies, 17 active general insurance companies and seven active composite companies. According to figures from the Association of T&T Insurance Companies, which represents most insurance companies operating in the country, gross written premiums received by its general insur¬ance reporting members in 2014 stood at TT$3.58bn ($551.3m), an increase of 7.1% on the preceding year, but still below the TT$3.69bn ($588.3m) registered in 2012. Although T&T’s national economy could be facing difficult headwinds in the coming years, industry experts believe that, overall, the future of the sector looks promising. This chapter features an interview with Robert Trestrail, Executive Vice-President and General Manager, Sagicor Life.

Trinidad and Tobago’s capital markets have developed against a background of strong energy sector growth. Therefore, the current lower price environment for oil and gas is expected to translate into slower and more modest stock market growth in the near term. A total of 38 stocks were traded in 2015 – 20 recorded advances, 13 experienced declines and five held steady – with share prices remaining broadly flat on the T&T Stock Exchange. Though stock exchange activity has been muted in recent years, some optimistic investors believe this is a good time to start taking positions for an eventual recovery. The government is committed to divesting some state-owned assets, which could lead to new initial public offerings and stimulate the market. In the fixed-income segment, increased levels of activity are expected, with government bond issuance set to grow.

Despite economic growth slowing in 2015 and 2016, Trinidad and Tobago’s banks remain profitable and may even see benefits from the end of a long period of very low interest rates. According to the Central Bank of T&T (CBTT), for the past five years growth in the financial sector (including finance, insurance and real estate) has outpaced economic expansion. In 2015 the nation’s GDP contracted by 2.1%, while the finance sector grew by 1.9%. Meanwhile, the share of GDP accounted for by finance, insurance and real estate has held largely steady at around 11% since the start of the decade. Total assets of the country’s commercial banks inched up by 0.82% in 2015, reach¬ing TT$134.8bn ($20.8bn) at the end of the year, up from TT$133.7bn ($20.6bn) in December 2014. T&T banks had TT$18bn ($2.8bn) worth of cash reserves at the end of 2015, which exceeded the statutory minimum reserve level of TT$13.3bn ($2bn) by a total of TT$4.6bn ($708.4m). This chapter features an interview with Nigel Baptiste, President, Republic Financial Holdings.

The smaller island of Tobago has a history of colonial rule by a succession of different European powers, including Spain, France and Britain, and in 1889 the British government first grouped the island with Trinidad under a single colonial administration. Trinidad & Tobago sought and achieved independence from British colonial rule in 1962 and became a repub¬lic in 1976. A significant proportion of the population has, however, consistently sought greater autonomy for Tobago within the existing constitution of the twin-island republic, and from time to time a smaller group on Tobago has argued for full independence. Tourism remains the strongest single economic activity in Tobago. The 300-sq-km island offers beautiful beaches, tropical forests and a wide range of leisure activities. Attractions include the Tobago Main Ridge Forest Reserve, a candidate for UNESCO World Heritage status, and Pigeon Point Beach, which has been ranked among the world’s best beaches by media outlets such as CNN and the UK’s The Guardian. This chapter contains an interview with Orville London, Chief Secretary, Tobago House of Assembly (THA).

At first glance, the newly elected government of Trinidad and Tobago faces a formidable first year, marked by one of the deepest slumps in energy prices seen in recent decades. According to provisional data by the Central Bank of T&T, the twin-island economy contracted by 2.1% in 2015, with GDP down 3% year-on-year in the fourth quarter of the year, reflecting a 5% contraction in the energy sector and a combined 1.8% decline in non-energy sectors. Meanwhile, government revenue fell by 6.2% in FY 2014/15, with a 35% decline in energy collections outstripping increases in non-energy and capital receipts. As a result, authorities have embarked on a programme of fiscal austerity and are ramping up efforts to diversify the TT$175.99bn ($27.1bn) economy. According to IMF projections, GDP growth is expected to resume in 2017, but not before an estimated contraction of 1.1% in 2016. This chapter contains interviews with Paula Gopee-Scoon, Minister of Trade and Industry; Jorge Familiar, Vice-President for Latin America and the Caribbean, World Bank; and Gervase Warner, President and Group CEO, Massy Holdings; as well as a viewpoint from Jeffrey Sachs, Director, the Earth Institute at Columbia University.