Uncertain future for Ennia Life Insurance raises concerns in Curaçao
October 6, 2023 –WILLEMSTAD – Curaçao faces a potentially dire situation in the insurance industry as the decision to decline financing for the continuation of Ennia Leven (Life) insurance looms large. The repercussions of this move, which ties up 1.4 billion guilders (according to Prime Minister Pisas), instead of investing it, could severely impact the government’s ability to meet its financial obligations.
Prime Minister Gilmar Pisas disclosed that rejecting the financing offered by the Netherlands was far from a straightforward decision, underscoring the complexity of the matter during an interview with the media. While the Council of Ministers’ choice carries certain advantages, it does not come without disadvantages. Should Ennia Leven exit the market, the scarcity of major pension companies offering pensions in Curaçao would lead to an increase in pension prices.
The employment landscape within “Ennia Leven” is also facing challenges. As the pension fund within Ennia is being dissolved, the company is compelled to initiate layoffs. Ultimately, more than 50% of Ennia’s workforce will be affected. The days of companies or individuals heading to Gorsiraweg to secure insurance seem to be numbered.
From a technical perspective, the burden of Ennia’s fate will weigh heavily on the State Common Service’s balance sheet, presenting a grave concern. Prime Minister Pisas emphasized that Curaçao is ill-equipped to bear the financial responsibility of Ennia, deeming it “too heavy for Hercules.” Alternative means of securing funds to guarantee Ennia’s pensioners will need to be explored. As it stands, the future of Ennia Life insurance remains shrouded in uncertainty.
