The Central Bank of Liberia (CBL) has organised a review of proposed changes to legislation aimed at establishing an independent insurance regulator. The plan is to transfer supervision of the insurance sector from the CBL to the proposed Insurance Commission for more effective regulation.
Last week, the CBL held a three-day workshop during which stakeholders reviewed the 2020 Insurance Commission Act that aims to create a regulatory body. Stakeholders at the workshop also discussed updates to the Act. Feedback raised will be incorporated into the final draft of a Bill to be sent to lawmakers. The National Insurance Commission of Nigeria (NAICOM) is a technical partner for the workshop.
CBL executive governor Henry Saamoi stressed that establishing the insurance commission would strengthen the insurance sector and ensure broader financial stability. He also described Liberia's current insurance regulatory framework as fragmented.
The proposed insurance regulator will improve the legislative and regulatory framework, invite greater competition, increase access to insurance across the country, and promote the development of the insurance sector, according to local media reports.
Stakeholders at the workshop last week included representatives from the Ministry of Finance and Development Planning, Ministry of Transport, US Embassy, Liberia Bankers Association, heads of insurance companies, the National Bar Association, the Chief Judge of the Commercial Court, and technical experts.
Liberia has for several years now been making attempts to set up an insurance regulator. However, progress in this area has reportedly been affected by the need for legal reform, capacity building and infrastructure for the sector.