The Executive Governor of the Central Bank of Liberia (CBL), Henry F. Saamoi, has described the ongoing three-day validation workshop to review the draft insurance law of 2020 at the Executive Pavilion in Monrovia as a historic moment for Liberia’s financial sector, one that brings Liberians closer to the creation of an independent Insurance Commission.
Speaking Wednesday, March 5, 2025 at the Validation of the Proposed Draft Insurance Commission Act, Governor Saamoi said, ‘‘we believe that the commission will serve as a cornerstone for a stronger and more resilient insurance industry in our country, one which serves to support and buttress the Central Bank’s goal of a stable and inclusive financial sector.’’
Governor Saamoi recalled that during the period that the Insurance Sector has been under the oversight of the CBL for nearly a decade, significant strides have been made. He named the significant strides as the promulgation of relevant Regulations to ensure that the Insurance Sector was on par regionally, the sponsorship of 8 staff members to gain relevant insurance training to ensure that the Sector had both qualified and competent personnel for this moment, and ensuring the prompt payment of claims through the enforcement of regulations and conducting examinations of the Sector to protect the public from unlicensed practice, amongst others.
Nevertheless, he said these strides have not been without challenges.
‘‘In the first five years, the transition from the CBL supervisory oversight to an independent regulatory body was a complex and difficult process. We faced numerous hurdles as we navigated the need for legal reform, capacity building, sustainability, and the establishment of the necessary infrastructure for such an important sector. However, despite these challenges, we can confidently say that we are on course, and this gathering marks a clear indication that we are on the right path,’’ the CBL Boss told the gathering. He said the development of this draft is a result of extensive consultations, detailed analysis, and the hard work of a broad range of stakeholders, including regulators, insurers, and the public.
‘‘Going into the future, the CBL commits to not leaving the Insurance Sector without ensuring that the foundation laid is built upon. To this end, we will be preparing a Transitioning Report, which will accompany the Draft Insurance Commission Act. The Transitioning Report will provide a comprehensive overview of where the Insurance Sector started under the CBL’s stewardship, where it stands today, and what is expected from the new Insurance Commission in order to make the sector vibrant, competitive, and robust,’’ the head of the CBL stated.
‘‘These are crucial steps that we must take to ensure that the Commission is equipped to regulate, supervise, and grow Liberia’s insurance market. Thus, the Transitioning Report will highlight a summary of the insurance sector’s evolution under the CBL’s oversight, a reflection on the progress made thus far, the challenges faced, and the successes achieved, the specific actions and initiatives the Insurance Commission should prioritize in the medium term to build a vibrant and sustainable sector.’’
‘‘These will include the adoption of modern regulatory standards, capacity-building efforts, and consumer protection measures, a tentative medium-term budget that will guide the Commission’s operational needs in its first three years of operation, and the priority steps that the Commission must take to begin its operations; including staff recruitment, administrative and logistical support, technological infrastructure, and the development of public outreach programs.’’
Mr. Saamoi mentioned that the CBL plans to submit this report alongside the draft Insurance Commission Act to ensure that all stakeholders have a full understanding of what needs to be done to make the Commission’s launch as effective as possible. ‘‘Distinguish ladies and gentlemen, while this transition to an independent Insurance Commission is a momentous step, we want to emphasize that the CBL remains committed to the long-term success of the Commission. The Central Bank of Liberia will continue to provide support through ongoing collaboration, technical assistance, and near-term oversight to ensure that the Commission is able to perform its critical functions effectively,’’ he continued.
‘‘We understand that the establishment of an independent body is only the beginning of the journey. The Commission’s success will depend on its ability to evolve, adapt and be responsive to the changing needs of the market, and the Central Bank of Liberia will remain a key partner in helping to achieve this goal. ‘Distinguish guests, the beginning of today’s validation exercise is a defining moment for the future of Liberia’s insurance sector. It signals our collective determination to build a stronger, more vibrant financial system that serves the needs of the people and contributes to the long-term economic growth of Liberia. The Central Bank of Liberia is committed to supporting this transition every step of the way and ensuring that the Insurance Commission is equipped to regulate, protect consumers, and foster a competitive and sustainable insurance market,’ he said.
Meanwhile, he thanked everyone who has been involved in the development of this Proposed Draft Insurance Commission Act. He also thanked all those who responded to their request to form part of this validation exercise. ‘‘Our special thanks and appreciation go to the Nigeria Insurance Commission (NIACOM) for designating an insurance expert in support of our validation exercise. This is a critical initiative, but together, we can build an insurance sector that contributes to the prosperity and stability of our financial sector,’’ the CBL Boss added.
