A deputy governor at the Central Bank of Liberia (CBL) has said that insurance is very important in the Liberian economy because it plays a significant role in mobilizing capital resources for growth and development of the economy.
Deputy Governor Boima Kamara made the assertion Monday, May 5, in Monrovia, during formal the opening of the 36th Annual General Meeting and Education conference of the West African Insurance Companies Association (WAICA).
The 2-day WAICA Meeting is being held under the theme: “Modern Technological Advances and the Development of the Insurance Industry in West Africa.”
Based on that, Mr. Kamara told WAICA delegates that the CBL took over the regulation and supervision of the insurance sector in 2009, and began processing or reforming the sector so that to it operates under the relevant provisions of a new financial institution Act of 1999 including the 1999 CBL Act.
Following a compressive survey and extensive consultation with the sectors, Mr. Kamara said that the CBL issued a one-year insurance action plan for the first stage of the reform agenda in 2011.
According to the deputy CBL Governor, the focus plan was to ensure that all operating insurance companies in Liberia were in compliance with the required minimum capital as well as strengthening the board and management oversight to reduce risk.
“The CBL is pleased to announce to you all that this stage of the reform has been successful, and as a result of the exercise, 20 out 26 insurance companies have met the requirements and have been licensed by the CBL to conduct insurance business in Liberia,” he said.
However, the CBL Deputy Bank Governor used the occasion to encourage the 20 insurance operators to seize the opportunity to become part of WAICA.
He told them that WAICA has lot of opportunities in the future for Liberia.
For his part, the Deputy Minister for Administration and Insurance at the Ministry of Transport, J. Levi Demmah, who delivered the keynote address on behalf of the Liberian government, said it was good for West Africans to come together, to discuss issue pertaining to the growth of the economy in the sub-region.
Min. Demmah said since its founding, WAICA has established two institutions in Africa and it is building the human capacity of its staff.
He also told WAICA delegates to reflect on their past activities as long as the association exists in the West African region.
Mr. Demmah also noted that insurance companies in Liberian have faced many challenges over the years, especially where the country is recovering from civil crisis.
However, the Deputy Transport Minister said they were farsighted to launch a compulsory vehicle third party registration in the country, which he said will benefit many Liberians when it comes to accident and casualty.
In his welcome remarks earlier, the vice-president of WAICA and president of the Association of Insurers in Liberia (AIL), Momo Fortune, thanked participants for attending this year’s 36th Annual General Meeting and Education Conference in Monrovia and hoped that they will achieve their desire goal at the end of the gathering.
Mr. Fortune, General Manager & CEO of Mutual Benefits Assurance Company, is expected to be installed into office as the new president of WAICA today, May 6.
The delegates are looking at Modern Technological Advances and the Development of the Insurance Industry in West Africa as well as Business Innovation Powered by technology: the expectations of stakeholders in the Insurance Industry in the sub-region.
Meanwhile, the West African Insurance Companies Association (WAICA), is a regional association of insurance companies and institutions in English-speaking West Africa.
It was founded in 1973 by insurance institutions in the five West African countries, namely; The Gambia, Sierra Leone, Ghana, Nigeria and Liberia.