The Central Bank of Liberia (CBL) is reminding all insurance companies who have not complied with the new capital requirements for insurance companies to do so or risk having their licenses revoked, according to a press release issued yesterday.
The deadline for complying with the new capital requirements is March 31, 2018.
It may be recalled that CBL Deputy Governor for Economic Affairs, Dr. Mounir Siaplay, during a two-day Insurance Sector Consolidation Workshop held at the CBL on December 11-12, 2017, reminded participants of the March 31, 2018 deadline; giving them enough time to either comply with the new requirement, merge with other insurance companies or be purchased by viable insurance companies.
Under the new regulation, General/Non-Life, Life, and Re-insurance companies must maintain capital requirements of US$1,500,000 (One Million Five Hundred Thousand United States Dollars), US$750,000 (Seven Hundred and Fifty Thousand United States Dollars), and US$5,000,000 (Five Million United States Dollars), respectively.
The new capital requirement is part of the CBL reform agenda intended to ensure that insurance companies operating in Liberia are adequately capitalized at all times to meet their claims and other future obligations under their insurance policies as well as unexpired risks, as and when they are due.
The New Insurance Act of 2013 empowers CBL to regulate and supervise Liberia’s insurance industry but, in spite the gains made since the enactment, compliance with the new capital requirement remains a challenge.
The CBL remains committed to the full implementation of the capital requires contained in its regulation.