The Central Bank of Liberia (CBL) has launched a two-day validation workshop aimed at finalizing the proposed Insurance Act of 2025, which would shift regulatory control of the insurance sector from the CBL to an independent Liberia Insurance Commission. While the initiative is being praised as a step toward strengthening the sector, questions are emerging about the timing, implementation challenges, and the CBL’s ability to ensure a smooth transition.
The workshop, held at the Executive Pavilion in Monrovia, gathered key officials from various ministries and agencies to provide input on the draft legislation. If passed by the Legislature, the law would establish the Liberia Insurance Commission as a state-owned corporate entity within three years. The commission would be responsible for regulating and supervising the sector through a risk-based approach.
CBL Governor Henry Saamoi acknowledged the complexity of the transition, describing the process as “difficult and challenging” over the past five years. Despite efforts to align Liberia’s insurance framework with regional standards, critics argue that the prolonged timeline raises concerns about the CBL’s capacity to deliver on major reforms efficiently.
During his remarks, Governor Saamoi highlighted some achievements under the CBL’s oversight. These include the development of regulatory frameworks and the sponsorship of staff for advanced training. However, he admitted that progress has been slow due to legal hurdles and capacity constraints.
“There were numerous hurdles as we navigated the need for legal reform, capacity building, and sustainability,” Saamoi stated. “Despite these challenges, we are on course, and this gathering marks a clear indication that we are on the right path.”
Yet, industry observers question why it has taken nearly a decade for the CBL to advance this initiative and whether the proposed three-year timeline to operationalize the new commission is realistic. Critics also point to broader concerns about Liberia’s regulatory environment, where past efforts to establish independent oversight bodies have been plagued by political interference and insufficient funding.
Saamoi revealed that the CBL will prepare a Transitioning Report to accompany the draft act. This report, he claimed, will document the insurance sector’s evolution under CBL oversight, highlight achievements, and outline key priorities for the new commission.
However, details on how the commission will be financed, its operational independence, and whether existing gaps in consumer protection will be addressed remain vague. The proposed transition plan will include a medium-term budget to guide the commission’s operations, covering staff recruitment, logistical support, and public outreach.
Some stakeholders remain skeptical about whether the CBL’s report will adequately address critical issues. These include the sector’s vulnerability to unlicensed operators and delays in claims payments, which have been a persistent concern for consumers.
While Saamoi praised the CBL’s regulatory role, critics argue that persistent challenges, such as delayed enforcement actions and limited public trust, indicate the bank’s failure to effectively manage the sector. The push to create an independent commission, they suggest, may be an attempt to offload responsibility for long-standing regulatory weaknesses.
“The success of this commission will depend on its ability to evolve and adapt,” Saamoi asserted, emphasizing that the CBL will remain a “key partner” after the transition. Yet, the bank’s track record has led some to question whether it is equipped to drive the reforms needed for a truly autonomous insurance regulator.
