Authorities of the Central Bank of Liberia (CBL) yesterday placed five insurance companies under Provisional Administration (PA), a release has said.
Companies affected by the CBL’s action on Friday, June 15, are the African Insurance Corporation of Liberia (AICOL); Capital Express Assurance Company (CEAC); Continental General and Life Insurance Corporation (CGLIC); Family Dollar Universal Insurance Services Incorporated (FDUIS) and the Global Trust Assurance Company (GTAC).
The Provisional Administrators (PAs) placed in these institutions are empowered to take all necessary actions in preserving the business/assets of the companies and to protect the interests of the policyholders.
“Action on behalf of, or for the account of the affected companies that occur without the prior approval of the Provisional Administrators after June 15, 2018, shall be void and of no effect,” the release said.
The move by the CBL is, accordingly, in keeping with the authority vested in the entity by the Insurance Act of 2013, and consistent with Sections 10.10 and 10.12. It followed an assessment by the bank of the capital positions of the five companies for the period ended March, 2018.
The assessments show that the companies have significant capital deficits and have consistently fallen below the capital requirements for licensed insurance companies since the first quarter of 2017.
The CBL assures the general public that the actions are in the best interest of the public and are aimed at promoting the safety and soundness of the insurance industry and the interests of the policyholders.
The action will preserve the business and the assets of these troubled insurance companies and will protect the interests of policyholders or other customers of these insurers.