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.
He further noted that existing regulatory efforts have helped enforce compliance, ensure timely claims processing, and protect the public from unlicensed insurers.
CBL’s Continued Role in the Transition
Governor Saamoi assured that while the transition to an independent Insurance Commission is a major structural shift, the CBL remains committed to supporting its successful implementation.
“The Central Bank will continue providing technical assistance, oversight, and collaboration to ensure the commission functions effectively,” he pledged.
He emphasized that the success of the new regulatory body will depend on its ability to adapt to market demands, reiterating the CBL’s role as a key stakeholder in the sector’s transformation.
“The launch of this validation process marks a defining moment for Liberia’s financial sector,” he stated. “It demonstrates the collective commitment of the government and stakeholders to build a strong and inclusive financial system.”
Stakeholders Endorse the Draft Law
Key government and judicial officials at the workshop expressed strong support for the proposed law.
Cllr. Boakai Kanneh, Chairman of the Law Reform Commission (LRC), warned of the risks associated with a loosely regulated insurance sector.
“This validation process is crucial for stakeholder input before the law is submitted to the legislature and the president for approval,” he noted.
Minister of Transport Sirleaf Tyler highlighted the Act’s significance, pointing out that his ministry plays a vital oversight role in ensuring regulatory compliance.
“This process will correct past regulatory lapses and establish a dedicated supervisory body for the industry,” he said, reaffirming his ministry’s commitment to supporting President Joseph Nyuma Boakai’s vision for a robust insurance sector.
Chief Judge of the Commercial Court, Eva Mappy-Morgan, lauded Governor Saamoi and his team for spearheading necessary reforms.
“With this Act, Liberia will align its insurance regulations with regional counterparts such as Ghana and Nigeria, which have made significant progress in modernizing their industries,” she remarked.
She emphasized that the legislation will enhance consumer protection, improve industry stability, and instill public confidence in the insurance market.
Representing Finance and Development Planning (MFDP) Minister Augustine Kpehe Ngafuan, Deputy Minister for Economic Management Dehpue Y. Zuo reaffirmed the ministry’s backing of the initiative, stating that the commission’s establishment aligns with the Unity Party-led government’s ARREST Agenda for Inclusive Development (AAID).
“We must critically examine this Act to ensure it strengthens the insurance market,” Minister Zuo stated. “Insurance is fundamentally about income protection.”
He cautioned that without a robust regulatory framework, businesses remain vulnerable to financial losses, emphasizing that the new Act will mitigate such risks and reinforce industry trust.
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