-For failing to meet capital requirements
The Central Bank of Liberia (CBL) is again warning that all insurance companies who have not complied with the new capital requirements for insurance companies risk having their licenses revoked.
The deadline for complying with the new capital requirements is March 31, 2018, the CBL says.
Back in December 2017 at an Insurance Sector workshop, CBL Deputy Governor for Economic Affairs Dr. Mounir Siaplayreminded 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.
A CBL press release signed by the head of Corporate Communications Cyrus Badio over the weekend said, under the new regulation, General/Non-Life, Life, and Re-insurance companies must maintain capital requirements of US$1.5 million, US$750,000 and US$5 million, 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.
Meanwhile, the CBL says it remains committed to the full implementation of the capital requires contained in its regulation.