MONROVIA –The Central Bank of Liberia (CBL) has informed the House of Representatives about the critical need for the enactment of an Insurance Commission Act so as to fully regulate the sector.
By Emmanuel Weedee-Conway
In a communication to the House read during the second day sitting of the third session, first quarter of the 55th Legislature, CBL points out that enactment of the Act would transition the regulatory and supervisory responsibility of the insurance sector to an independent Insurance Commission in pursuant to PART II Subsection 6(0) of the Act Establishing the Central Bank of Liberia 1999 (The Act).
CBL reminded lawmakers that prior to the amendment of the Act, the Bank was given the mandate of five years to reform the sector and pave the way for a transition Commission following a comprehensive to an independent Insurance assessment of the sector’s status.
Based on the outcome of the assessment, the Central Bank was given an additional five-year transitional period (2020-2025) to continue its regulatory and supervisory oversight and facilitate the transition.
In fulfillment of this statutory mandate, CBL maintains that it successfully elevated the former Insurance Section into a full-fledged Insurance Department; thus, providing the required visibility in keeping with Section 6(0) of The Act.
In line with its statutory duties, the drafted an Insurance Commission Act, which was validated through a national stakeholders’ engagement and reviewed by the Law Reform Commission. Yet, the document is still before the watchful eyes of legislators.
Accordingly, the CBL intones that in the absence of the enactment of the Insurance Commission Act, the insurance sector will be left without a principal regulator.
Sadly, the Bank furthered that it will result in gaps in licensing, supervision, enforcement, and consumer protection, and hence, undermining the gains made in reforming this critical segment of the financial system.
“In view of the foregoing, the CBL respectfully seeks your guidance and leadership to facilitate the timely enactment of the Insurance Commission Act to ensure continuity of insurance regulation and safeguard the stability, integrity, and credibility of the sector and the broader financial system,” added the CBL communication.
Following the reading and subsequent deliberation of the communication, it was then forwarded to the Committee on Banking and Currency, Transport and Judiciary to report to Plenary within two weeks’ period.
