The Central Bank of Liberia (CBL) said in a statement that it’s on track with enforcing the updated capital requirements for insurers which came into force in September last year.
CBL previously announced plans to implement the regulatory amendments in stages on a quarterly basis over a three-year period.
Under the regulation, insurers are required to maintain a minimum capital requirement based on classes of insurance business and category of insurance activities.
General/non-life insurance businesses are required to hold at least $1.5 million, for life insurance this figure is at $0.75 million, and in reinsurance the requirement is $5 million.
The enforcement of the new capital requirement comes as part of CBL’s broader reforms which aim to strengthen the insurance sector through ensuring adequate capitalization, strong corporate governance, adequate risk management and reinsurance arrangements, among others.
The bank said in a public notice that as the Regulator and Supervisor of Liberia’s insurance industry, it “will remain resolute in reforming the Liberian insurance industry in line with its mandates under the New Insurance Act of 2013 and other Insurance laws.”
