FOREMOST INSURANCE SUPERVISORY AUTHORITY
The Insurance Department is responsible to maintain and/or ensure the safety, soundness and the integrity of the Liberian Insurance sector and ensure the smooth transition of the supervisory body to an autonomous agency, in keeping with relevant laws and international standards. Towards this end, the department formulates regulatory and supervisory policies, frameworks and guidelines governing the activities of the sector; ensures compliance with policies, regulations and guidelines; and conducts Risk-Based Supervision of insurance companies & insurance intermediaries (Brokers and loss adjustor), complemented with an experienced robust off-site surveillance team.
The Central Bank of Liberia (CBL) in 2010 took over the regulation and supervision of the insurance industry and began reforming the industry the same year. Over the years, the reform had made several gains including the passage of the New Insurance Act 2013; gazette of several insurance regulations to complement the Act in regulating and supervising the industry.
Currently, there are 14 insurance companies licensed to conduct insurance business in Liberia and 5 licensed insurance brokerage firms.
To become an effective, efficient and dependable regulatory and supervisory arm of the Central Bank of Liberia (CBL) and be supportive in achieving the Bank’s overall objective of financial stability and economic development of Liberia.
Is to adopt best practices for effective Administration, Regulation and Supervision of the Liberian Insurance Industry in order to protect policyholders and other beneficiaries of insurance contracts and facilitate adequate protection of strategic Government asset by providing relevant advice to the Governor of the CBL on all insurance related matters.
3. STRATEGIC GOALS
- To promote, protect and enhance the stability of the insurance industry of Liberia through effective licensing, supervision and surveillance to ensure the continuity of services and to mitigate against risks of systemic importance in the insurance industry
- To enhance the insurance regulatory framework (Insurance Act, regulations, directives) in keeping with market factors and ensure compliance with relevant laws and regulations.
- Promote capacity building and skills retention befitting of a competent supervisory authority and in line with the Bank’s quest to be the employer of first choice
- Promote sound risk management practices, adequate disclosure and good corporate governance in the insurance sector
- To develop and implement policies which support and foster access to appropriate, affordable and timely insurance products and services in line with the Bank’s Financial Inclusion Agenda.
- Maintain effective liaison with other regulators on the local, regional and international arena to minimize regulatory arbitrage and/or gaps;
- Ensure efficient and effective mechanisms for handling consumer complaints and promote consumer education and awareness in order to enhance confidence and trust in the financial system
The objectives of the regulation and supervision of the Insurance Industry border on two complementary parts:
- to ensure the safety and soundness of insurance institutions, individually and collectively
- to protect policy holders.
The Insurance Department is also charged with the task of ensuring a smooth transition to an autonomous Insurance Regulatory Agency.
5. CORE VALUES
- Professionalism and integrity.
- Transparency and accountability.
- Teamwork and cooperation.
- Critical thinking and objectivity.
- Dependability and creativity.
- Commitment and dedication; and
6. STRUCTURE OF DEPARTMENT
The Department’s activities are currently being carried out through 2 (two) sections: Supervision & Surveillance Section (SSS) and Market Conduct and Regulation Section (MPS). The department is staffed with, competent, and experience professional who provide regulatory and supervisory proficiency in ensuring a safe and sound financial system. Each of the two sections has sub-units with specific responsibilities. The MPS and SSS are jointly responsible for the regulation and supervision of Insurance companies and intermediaries.