IPNews-Monrovia: As the Senate Committee on Banking and Currency seeks expert views on a proposed bill to amend the Central Bank of Liberia (CBL) Act, the President of the Insurance Association of Liberia wants Legislative enactment to create the Insurance Commission of Liberia.

Mr. Saye D. Gbalazeh managing director and CEO of Activa International indicated that it is now time for the formation of an Insurance Commission as required by the 2013 Insurance Act.

Appearing Monday June 15, 2020 at a hearing organized by the Senate’s Committee on Banking and Currency and Judiciary, Mr. Gbalazeh, who is also President of the Insurance Association of Liberia, told members of the committee that the 2013 insurance Act calls for the establishment of an Autonomous Agency within six years.

Gbalazeh further mentioned that in other countries around the world, the insurance commission is an autonomous commission headed by a commissioner.
He said the agency is run by experts, adding “if that is done in Liberia, the country will benefit through revenue generation”

“We are ready for the transition because the current structure as it, is not serving our purpose. Central Bank does not have the time to put in place licenses requirement for agency and brokers, there is a need for that. CBL should have requirement for who can become an agent or a broker. It is not about changing the law it, it’s about enforcing, putting a structure in place that has the capacity to enforce.

According to him, the insurance sector in Liberia is been relegated wherein a Deputy Director at the Central Bank of Liberia is the person who has oversight on this vital sector, something he said has led to the sector been neglected because those who provide oversight do not have the requisite expertise.

According to him, the 2013 Insurance Act calls for the setting up of an Insurance Commission as an autonomous commission six years after the passage of the Insurance Act.

This law he said, would separate the insurance sector from the Central Bank of Liberia.

With respect to the government run National Insurance Corporation of Liberia (NICO) Gbalazeh described the entity as a “creeping danger” and a potential problem to the industry.

He further noted that the current law gives undue advantage to the National Insurance Corporation (NICO) against other players in the sector when they (NICO) should be competing in the market.

“We are moving away from an old age government style where you sit and things fall on your lap. This is a time for creativity, don’t sit and wait because the law says, I should take 20% of my premiere to give it to them.”

Backdrop of the Insurance Commission
The Authority has the following functions in relation to the insurance market in Liberia: (a) to license insurers, reinsurers, insurance brokers, insurance agents and loss adjusters in accordance with this Act; (b) to regulate and supervise licensed insurers on an individual and group-wide basis;
To regulate and supervise licensed insurance brokers, licensed insurance agents and licensed loss adjusters; (d) to enforce compliance with this Act and the Regulations; (e) to take enforcement action against persons carrying on unlicensed business; and (f) to cooperate with, and provide assistance to, foreign regulatory authorities and regulatory authorities and law enforcement agencies in Liberia.

The Authority shall perform its functions with the objectives of: (a) promoting the maintenance of a sound, efficient, fair and stable insurance market in Liberia; (b) promoting public confidence in the insurance market; and (c) protecting the interests of customers and prospective customers of license holders.

In performing its functions, the Authority shall have authority with regard to: (a) the need to implement international standards and best practices as far as is appropriate and practicable to Liberia, taking particular account of the stage of development of the insurance market.