Chief Judge Calls for Strong Regulation in Liberia’s Insurance Sector

Cllr. Eva Mappy-Morgan, Chief Judge of the Commercial Court of Liberia, advocates for a National Insurance Commission to enhance regulation and oversight in Liberia’s insurance sector. She urges comprehensive standards to protect consumers, foster industry stability, and facilitate market development. Emphasizing successful regional models, she calls for modernization of outdated legislation, ensuring that the country aligns with international best practices.

Cllr. Eva Mappy-Morgan, the Chief Judge of the Commercial Court of Liberia, has asserted the necessity for a comprehensive regulatory framework to establish a National Insurance Commission in the country. She emphasized that a robust regulatory regime and effective supervision are critical to revitalizing Liberia’s insurance sector. Her comments were made during the opening of a three-day Insurance Act Validation Workshop, organized by the Central Bank of Liberia (CBL).

Judge Mappy-Morgan highlighted that a well-structured regulatory standard must be put in place to support the formation of the National Insurance Commission aimed at transforming the sector. She praised CBL Governor Henry F. Saamoi for prioritizing insurance reform within his first 300 days of office, calling it a significant initiative.

Providing historical context, Judge Mappy-Morgan addressed the previous dominance of foreign insurance firms in Liberia, which limited opportunities for local entities due to various challenges, including inadequate capital and lack of technical expertise. The civil conflict of the 1990s further hampered the industry, but she noted recent positive trends with increased consumer confidence and competition among insurers.

She reiterated the importance of establishing a National Insurance Commission for effective regulation and oversight of the insurance industry. This commission would ensure compliance, monitor business conduct, and protect consumer rights while promoting industry stability. Moreover, the commission would encourage development, innovation, and expansion of Liberia’s insurance market.

Judge Mappy-Morgan insisted on the significance of strong risk management practices as a core function of the commission, which would enhance insurer resilience and performance. Moreover, she stressed that aligning Liberia’s regulations with international standards is essential for local companies to thrive globally.

Additionally, a transparent and accountable insurance commission would bolster public confidence, encouraging more engagement with insurance products. Judge Mappy-Morgan cited successful regional models from Ghana and Nigeria as evidence of the benefits a National Insurance Commission could bring to Liberia’s economy.

She advocated for a comprehensive revision of Liberia’s outdated Insurance Law of 1973 to modernize the legal framework in accordance with current industry practices. Graduating from the West African Insurance Institute, she pledged her dedication to ensuring that Liberia’s insurance regulations align with international best practices and support the National Insurance Commission’s establishment.

The Chief Judge also reaffirmed the Commercial Court’s commitment to efficiently resolving insurance disputes, as mandated by its legal framework. The Commercial Court, established in 2010, plays a vital role in adjudicating insurance-related matters promptly.

In summary, Cllr. Eva Mappy-Morgan has emphatically advocated for the establishment of a National Insurance Commission in Liberia, highlighting the urgent need for a comprehensive regulatory framework. She underscored the historical challenges faced by local insurance firms and the necessity for effective supervision to ensure market stability and growth. By revising outdated legislation and adopting regional best practices, Liberia can foster a robust insurance sector that benefits both consumers and the economy. Judge Mappy-Morgan’s insights affirm the significance of strong governance to enhance public trust in the insurance market.

Original Source: www.liberianobserver.com