5 March 2018

Liberia: Insurance Companies to Comply or Have Licenses Revoked

The Central Bank of Liberia (CBL) is reminding all insurance companies who have not complied with the new capital requirements for insurance companies to do so or risk having their licenses revoked, according to a press release issued yesterday.

The deadline for complying with the new capital requirements is March 31, 2018.

It may be recalled that CBL Deputy Governor for Economic Affairs, Dr. Mounir Siaplay, during a two-day Insurance Sector Consolidation Workshop held at the CBL on December 11-12, 2017, reminded participants of the March 31, 2018 deadline; giving them enough time to either comply with the new requirement, merge with other insurance companies or be purchased by viable insurance companies.

Under the new regulation, General/Non-Life, Life, and Re-insurance companies must maintain capital requirements of US$1,500,000 (One Million Five Hundred Thousand United States Dollars), US$750,000 (Seven Hundred and Fifty Thousand United States Dollars), and US$5,000,000 (Five Million United States Dollars), respectively.

The new capital requirement is part of the CBL reform agenda 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 New Insurance Act of 2013 empowers CBL to regulate and supervise Liberia's insurance industry but, in spite the gains made since the enactment, compliance with the new capital requirement remains a challenge.

The CBL remains committed to the full implementation of the capital requires contained in its regulation.

Liberia

Sirleaf Brands Weah 'Wicked, Impugnment'

Former President Ellen Johnson-Sirleaf has expressed strong dissatisfaction over what she says is the manner in which… Read more »

See What Everyone is Watching

Copyright © 2018 Liberian Observer. 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 600 reports a day from more than 140 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.