The 2016 Insurance Act was brought to the house on Friday for Amendment. Minister in the Office of the Prime Minister Stuart Young during his contribution explained that the previous bill allowed for abuse and mismanagement by some within the sector.
He said the government has chosen to learn from the CLICO debacle.
Under the new Act, the Central Bank can now intervene in the instance that an insurance company is acting outside of the interest of policyholders or if the company is found to be using policyholders' funds for unauthorised purposes.
Finance Minister Colm Imbert tweeted following the passing of the act, saying "A new era of regulation of insurance companies and protection of consumers is about to begin".