Lawmakers Pass Insurance Commission Establishment Bill | Business

The House of Representatives has passed a landmark bill seeking to establish an independent Insurance Commission for Liberia, a move aimed at strengthening regulatory oversight and accelerating the growth and development of the country’s insurance sector.

The unanimous passage of the Bill has been forwarded to the Senate for concurrence 

The approved legislation transfers responsibility for regulating the insurance industry from the Central Bank of Liberia (CBL) to a standalone regulatory authority that will oversee all insurance-related activities across the country.

Under the bill, the Insurance Commission will be responsible for the licensing, regulation, supervision, and monitoring of all insurance companies, brokers, agents, and loss adjusters operating in Liberia. These functions are currently performed by the Insurance Department of the Central Bank of Liberia.

The House’s action comes months after Executive Governor of the Central Bank of Liberia, Henry F. Saamoi, publicly called for the establishment of an independent National Insurance Commission and subsequently spearheaded efforts leading to the drafting and validation of the proposed Insurance Commission Act.

Speaking on March 5, 2025, at the opening of a three-day Insurance Act Validation Workshop organized by the Central Bank of Liberia in collaboration with the Law Reform Commission at the Executive Pavilion in Monrovia, Governor Saamoi emphasized the need for a specialized regulatory institution to strengthen oversight and improve the effectiveness of insurance regulation in Liberia.

According to Governor Saamoi, the proposed commission, when established, will operate as a corporate body known as the Liberia Insurance Commission, wholly owned by the Government of Liberia and vested with the authority to regulate all insurance business within the country.

Lawmakers supporting the measure argued that the increasing complexity of the insurance industry requires a dedicated regulator capable of focusing exclusively on sector-specific challenges, consumer protection, and market development. They noted that the new commission would enhance accountability, improve compliance with industry standards, and strengthen public confidence in insurance services.

The legislation represents a significant reform in Liberia’s financial regulatory framework. Proponents believe an independent Insurance Commission will create a more transparent and competitive insurance market, attract investment, and ensure stronger enforcement of insurance laws and regulations.

Beyond its supervisory role, the commission will be expected to formulate and enforce regulatory policies, monitor the financial health of insurance institutions, investigate violations of insurance laws, and promote best practices throughout the industry.

The reform aligns Liberia with international best practices, where many countries have established specialized insurance regulators separate from their central banks to provide focused oversight and stronger consumer protection.

With passage by the House of Representatives, the bill now advances to the next stage of the legislative process. If enacted into law, the Liberia Insurance Commission will become the principal authority responsible for regulating the country’s insurance industry, marking the end of decades of oversight by the Central Bank’s Insurance Department and ushering in a new era of independent insurance governance.