The Executive Governor of the Central Bank of Liberia (CBL), Mr. Milton A. Weeks, has said that the bank will continue its reform of the insurance sector. Governor Weeks said there are still many areas of the sector which need further reform.
The Governor disclosed that the insurance section in the bank’s Regulation and Supervision department has continued to develop programs that the institution plans to implement in the months ahead.
There is a need, he said, for increased capitalization of insurance companies to make sure that they have sufficient capital to be able to adequately meet all of their obligations. Governor Weeks disclosed that the bank intends to pursue in the coming months some level of ensuring that “we have some form of re-insurance in Liberia.”
The Governor observed that presently insurance premiums intended for re-insurance are flowing out of the country. This trend, he said has resulted in the loss of millions of US dollars in insurance premiums that have to be paid to re-insurers.
The Governor, whose institution regulates and supervises the insurance industry in Liberia, also expressed concern that re-insurance premiums are not being paid regularly by institutions concerned. “We are going to exert more stringent supervision of the insurance sector to make sure that proper re-insurance is being made, and where we find that it is not being made, we will take requisite action,” Governor Weeks cautioned.
The CBL Governor made the remarks Tuesday, April 4, 2017, in Monrovia, when the Central Bank of Liberia, along with the Ministry of Transport, the Liberia National Police and the Association of Insurers of Liberia signed a Memorandum of Understanding, for the implementation of the Compulsory Third Party Motor Vehicle Insurance scheme. Signatories to the MOU welcomed the introduction of the initiative, which they say will go a long way in protecting the interest of the people. They promised to work together in ensuring that the compulsory third party motor vehicle insurance scheme is successfully implemented.
Signatories to the MOU included the Governor of the Central Bank of Liberia, Mr. Milton A. Weeks; The Deputy Minister for Administration/Insurance at the Ministry of Transport, Mr. Bushuben M. Keita; the Inspector General of the Liberia National Police, Col. Gregory B. Coleman; and the President of the Association of Insurers of Liberia, Mr. H. Momo Fortune.