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Monrovia – As a crucial step toward establishing the National Insurance Commission of Liberia, the Central Bank of Liberia on Wednesday, March 5, begins a three-day validation workshop to review the draft insurance law of 2020 at the Executive Pavilion in Monrovia.
The validation runs until Friday, March 7. The validation aims to review the Proposed Draft Insurance Commission Act, a critical step towards establishing a robust legal framework for the establishment of the unitary insurance commission to effectively regulate the Insurance Sector of Liberia.
The validation workshop will bring together stakeholders with diverse expertise to enhance the validation of the Proposed Draft Insurance Commission Act. Stakeholders’ feedback and recommendations will be incorporated into the final draft to be submitted to the Office of the President for onward submission to the National Legislature for passage.
Upon passage by the Legislature, the Insurance Commission Act will lead to the creation of the National Insurance Commission of Liberia.
Amongst other things, the draft Proposed Insurance Commission Act includes the framework for the issuance of regulating and supervising the Insurance Sector, licenses, enforcement of compliance, taking enforcement action against unlicensed firms, and establishing standards for conducting insurance business in Liberia.
Under the draft Act, the proposed Insurance Commission will have power to subpoena information and witnesses from various government entities, enforce mandatory insurances including third-party motor insurance, Fire Insurance, Marine, Professional indemnity Insurance and create a department to handle complaints against insurers or insurance institutions.
This new entity will be the sole regulator of the insurance industry, ensuring that license holders are supervised on a risk-sensitive basis, fostering competition within the industry and expanding access to the insurance market in Liberia. By fostering a well-regulated insurance sector, the commission will also contribute to the overall economic stability and growth of the country.
The Central Bank of Liberia is optimistic that the involvement of stakeholders in the validation process of the draft act will ensure due diligence and best practices as required for the passage of the act and subsequent establishment of the insurance commission.
The CBL also emphasizes that the engagement and contributions of stakeholders are vital to the successful validation of the Draft Insurance Act, which aims to create a transparent, efficient, and inclusive insurance industry in Liberia.
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