THE COLLAPSE of one of the region’s biggest insurance firms could leave more than 700 TC Islanders high and dry.

Providenciales-based Clico has wrapped up operations after its Trinidadian parent company announced debts topping a billion dollars.

TCI clients are demanding a colossal $2.6m in claims – many of them surrender requests – as the news sends shockwaves across the Islands.

As one of the country’s principal providers of pensions, life and medical insurance, the tumult could have a devastating effect on the nest eggs of hundreds of residents.

A company spokeswoman told the Weekly News that bosses were waiting for advice from the Government before policy holders would be told what to expect from the debacle.

Clico was forced to cease selling policies and wind up business dealings upon receiving news of liquidation on February 24.

Sister firm Clico Bahamas, based in Nassau, has also been forced to sell up following a court hearing initiated by the Bahamian Government.

The move places the future of almost 200 workers in limbo as well as leaving clients’ money hanging in the balance.

Around 20 policy holders took to the streets in Nassau’s Rawson Square this week to demand answers from Government officials.

Fears are rife among the almost 30,000 clients that they will face substantial losses on their investments.

Prime Minister Hubert Ingraham announced on Monday that the Government was unlikely to provide any guarantees for Clico’s operations.

He said it was too early to tell whether policy holders would lose cash.

Four companies have come forward to express an interest in buying the troubled firm.

A spokeswoman for TCI Premier Michael Misick said he was involved in discussions with the country’s chief economists regarding the local situation.

“He is receiving advice and as soon as he finishes his meetings he will issue a statement,” she said.

Parent firm CL Financial has faced months of difficulties as financial establishments across the globe continue to grapple with the worldwide economic meltdown.

The Trinidadian Government announced some weeks ago it would bail out the firm due to the massive losses it had racked up.

CL Financial is one of the largest conglomerates in the Caribbean, encompassing more than 65 companies in 32 countries worldwide with total assets standing at roughly $100 billion.

By Gemma Handy