11 August 2017

Liberia: New Capital Requirements for Insurance Companies

The Central Bank of Liberia (CBL) says that the ongoing implementation of the capital requirements for all licensed insurance companies operating in Liberia remains on course in line with regulation issued in 2015 and amended in 2016.

According to a press release, the regulation sets the capital requirement for each class of insurance business, and requires each insurance company to maintain a minimum capital requirement based on the category of insurance activity being undertaken by a company.

Under the regulation, General/Non-Life Insurance Business, must maintain a minimum capital requirement of U$ 1.500, 000.00 (One million Five Hundred Thousand U.S. Dollars); Life Insurance Business, a minimum capital requirement of US $750,000.00 (Seven-Hundred Fifty Thousand U.S. Dollars); and Reinsurance, a minimum capital requirement of US $5,000,000.00 (Five-Million U.S. Dollars), respectively.

The CBL says the implementation of the regulation, which began September 30, 2016, is being executed in stages, on a quarterly basis, over a period of three years to allow for flexibility.

The implementation of the capital requirements is part of the reform agenda of the CBL, aimed at strengthening the insurance sector by ensuring safety and soundness of the industry through adequate capitalization, strong corporate governance, adequate risk management and reinsurance arrangements, among others.

The Bank notes that the move is in line with its mandate under the New Insurance Act of 2013 as the Regulator and Supervisor of the Insurance Industry of Liberia. It assures policy holders, creditors and the general public engaged in business with the insurance industry, that the implementation of the revised capital requirement is intended to ensure that insurance companies operating in Liberia are adequately capitalized at all times to meet their claims and other future obligations under their insurance policies as well as unexpired risks as and when they are due.

"The CBL will remain resolute in reforming the Liberian insurance industry in line with its mandates under the New Insurance Act of 2013 and other Insurance laws," the release concludes. Press Release

Liberia

Carlton Boah Withdraws Bid From Liberia's Presidential Race

The friends of Carlton Boah (a body setup to explore the possibility of Carlton Boah seeking the presidency) wishes to… Read more »

Copyright © 2017 The New Dawn. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 900 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.