Liberia: CBL Governor Calls for Legislation of Draft Insurance Act to Strengthen Industry, Ensure Financial Stability

Monrovia — The Executive Governor of the Central Bank of Liberia (CBL), Henry F. Saamoi, has underscored the urgent need to legislate the Draft Insurance Act, emphasizing that establishing the Liberia Insurance Commission through law will be pivotal in fortifying the nation's insurance sector and ensuring broader financial stability.

Speaking at the opening of a three-day validation workshop in Monrovia on Wednesday, March 5, 2025, Governor Saamoi stressed that once enacted, the Insurance Act will empower the Liberia Insurance Commission to subpoena information and witnesses from government institutions, strengthening regulatory oversight.

Held under the theme "Redefining Insurance Regulation and Supervision in Liberia," the workshop seeks to refine the draft insurance law of 2020. Governor Saamoi outlined key aspects of the proposed legislation, including the enforcement of mandatory insurance policies such as third-party motor insurance, the creation of a dedicated complaints resolution department, and the issuance of licenses for insurance companies nationwide.

The Push for Independent Insurance Regulation

The CBL governor highlighted that Liberia's current insurance regulatory framework is fragmented, with oversight spread across multiple entities. He argued that independent regulation is critical to modernizing the sector.

"This Act will establish an autonomous Insurance Commission three years after its passage, creating a dedicated regulatory body solely responsible for overseeing the insurance industry," he stated.

The new commission, he added, will be a state-owned corporate entity tasked with setting operational standards, cracking down on unlicensed insurance firms, and ensuring fair competition within the industry.

"The commission will regulate the sector, supervise licensed entities based on risk assessment, promote competition, expand insurance access, and ultimately contribute to Liberia's economic growth," Governor Saamoi explained.

Significance of the Validation Workshop

Describing the workshop as a landmark moment for Liberia's financial system, Governor Saamoi noted that the deliberations bring the country closer to establishing an independent insurance regulatory body.

Reflecting on the CBL's decade-long oversight of the insurance sector, he highlighted significant achievements, including the implementation of industry-specific regulations aligning Liberia's insurance sector with regional standards and the specialized training of eight staff members in insurance governance...Read more on All Africa

Source: All Africa