The Plenary of the House of Representatives, has instructed its Committees on Banking and Currency, Transport, and Insurance to probe the Central Bank of Liberia (CBL).
The Committee is expected to provide a comprehensive update on the Bank’s efforts to transition the regulatory and supervisory responsibility of the insurance sector to an independent Insurance Commission.
Plenary’s decision, according to a release, followed a formal communication from CBL Executive Governor, Henry F. Saamoi, informing the House of the status of the transition process in keeping with Part II, Subsection 6(o) of the Act Establishing the CBL (1999).
In his communication, Saamoi recalled that prior to the amendment of the Act, CBL was granted a five-year mandate to reform the insurance sector, and prepare it for transition to an independent Insurance Commission. This would follow a comprehensive sector assessment.
Based on the outcome of that assessment, the CBL was subsequently granted an additional five-year transitional period (2020–2025) to continue regulatory and supervisory oversight, while facilitating the transition.
In fulfillment of its statutory mandate, CBL elevated the former Insurance Section into a full-fledged Insurance Department, providing increased visibility and institutional capacity consistent with the requirements of the Act.
The Bank also drafted an Insurance Commission Act, which was validated through a national stakeholders’ engagement, and reviewed by the Law Reform Commission.
The draft legislation was submitted to the Office of President Joseph Nyuma Boakai, and subsequently forwarded to the Legislature for consideration.
Additionally, CBL prepared the necessary documentation, including a transition roadmap, to ensure a smooth handover of regulatory authority, while consolidating gains made in reforming the sector.
Saamoi cautioned that with the completion of the transitional period, CBL’s statutory mandate to regulate the insurance sector expired on December 31, 2025.
He warned that beyond this date, the Bank’s legal authority over the sector becomes uncertain, and that failure to enact the Insurance Commission Act, could leave the insurance sector without a principal regulator; creating gaps in licensing, supervision, enforcement, and consumer protection.
Such a situation, Saamoi said, could undermine the progress achieved in reforming this critical segment of the financial system.
In view of these concerns, the CBL has requested the guidance and leadership of the House to facilitate the timely enactment of the Insurance Commission Act.
This is to ensure continuity of regulation and safeguard the stability, integrity, and credibility of the insurance sector and the broader financial system.
Plenary has since mandated the relevant committees to review the matter and report their findings and recommendations to the House.