By Grace Bryant Mollay
The Central Bank of Liberia (CBL), under the leadership of Executive Governor Henry Saamoi, has issued a new directive aimed at tightening regulatory oversight of insurance companies issuing bonds in the country.
The directive, which took immediate effect, outlines specific compliance procedures insurers must follow before issuing any court bonds.
The move, authorized under Chapter 10.1 Subsection 1 (a & b) of the Insurance Act of 2013, is designed to ensure that insurers have sufficient assets to cover the bonds they issue and to protect the integrity of the financial system.
According to the CBL boss, all insurers intending to issue court bonds must now obtain prior written clearance from the CBL’s Insurance Department. Additionally, insurance companies are required to present notarized, certified audited financial statements for verification and assessment before being considered eligible to issue bonds.
The directive further mandates that insurers submit an up-to-date, certified listing of all outstanding bonds issued to date. This listing will be reviewed as part of the Central Bank’s assessment of an insurer’s capacity to issue new bonds.
“Only after fulfilling all three requirements written clearance, submission of certified financial statements, and an updated outstanding bonds listing will the Central Bank proceed to issue a Certification of Assets to the qualifying insurer,” the CBL boss stated.
This certification takes into account the cumulative value of bonds previously issued by the insurer, providing regulators with a clearer picture of the company’s financial obligations and ability to underwrite new risks.
The CBL emphasized that the directive remains in force until further notice and forms part of broader efforts to enhance accountability and stability in Liberia’s insurance sector.
This regulatory shift follows growing concerns about the financial soundness of some insurance providers and their ability to honor bond obligations, especially in high-stakes court cases.
With the directive now in effect, industry stakeholders are expected to tighten internal controls and ensure full compliance to avoid sanctions or delays in bond issuance.
The CBL has not yet disclosed any enforcement measures or penalties for non-compliance but indicated that oversight will be rigorous.
The directive underscores Governor Saamoi’s commitment to financial discipline and effective regulatory supervision in Liberia’s growing financial and insurance sectors.
