CBL Governor calls for harmonized insurance regulation across WAMZ

By David A. Yates

“We cannot achieve a stable and well-functioning regional insurance market unless we work together—sharing data, harmonizing standards, and coordinating supervisory actions,” Governor Saamoi stressed.

Executive Governor of the Central Bank of Liberia (CBL), Henry F. Saamoi, has made a strong call for the harmonization of insurance regulation and supervision across the West African Monetary Zone (WAMZ), warning that fragmented regulatory systems could undermine financial stability, investor confidence, and regional economic integration.

Governor Saamoi made the call on Friday while delivering the keynote address at the opening ceremony of the 14th Meeting of the West African Insurance Supervisors’ Association (WAISA), held at the Bella Casa Hotel in Monrovia.

The high-level gathering brought together insurance commissioners, regulators, and technical experts from WAMZ member states, alongside representatives of the West African Monetary Institute (WAMI), the College of Insurance Supervisors of WAMZ (CISWAMZ), and the Inter-African Conference of Insurance Markets (CIMA).

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Welcoming delegates on behalf of the Government and people of Liberia, the CBL Governor described the meeting as timely, noting that insurance plays an increasingly critical role in supporting economic stability, protecting households, enabling businesses to manage risk, and fostering long-term investment across the WAMZ.

“Your presence in our capital reflects our shared commitment to strengthening financial stability, enhancing insurance sector resilience, and deepening regional cooperation within the Monetary Zone,” he said.

Governor Saamoi urged regulators to adopt a forward-looking posture in strengthening the region’s insurance supervisory architecture, quoting Ghana’s first President, Dr. Kwame Nkrumah, who once said, “We face neither East nor West; we face forward.”

He further referenced Ivorian President Alassane Ouattara, emphasizing the importance of strong financial frameworks.

“A strong and stable financial system is essential for growth and for the prosperity of our people,” he said, adding that insurance supervision is a cornerstone of public confidence in financial systems.

The CBL Governor commended WAISA and CISWAMZ for notable progress in advancing regulatory convergence across the WAMZ. Among the achievements highlighted were improved cross-border claims settlement through the ECOWAS Brown Card Scheme, strengthened technical cooperation via the Regional Insurance Experts Committee, the growing adoption of risk-based supervision, and enhanced collaboration through supervisory colleges and joint examinations.

“These achievements reflect our united vision to build more resilient, credible, and interconnected insurance markets,” Governor Saamoi noted.

However, he cautioned that the evolving global and regional financial environment presents new risks that require coordinated regulatory responses.

“Emerging risks—climate shocks, cyber-threats, technological disruptions, and macroeconomic volatility—demand stronger supervisory cooperation and harmonized regulatory responses,” he said.

Quoting Burkina Faso’s revolutionary leader Thomas Sankara, Governor Saamoi underscored the need for decisive action.

“You cannot carry out fundamental change without a certain amount of courage,” he said. “Courage is what our region requires today—courage to embrace reforms, adopt new regulatory technologies, and strengthen accountability across institutions.”

Governor Saamoi reaffirmed Liberia’s commitment to aligning its insurance regulatory framework with regional and global best practices. He disclosed that the Central Bank of Liberia has intensified reforms aimed at strengthening the domestic insurance sector.

According to him, these efforts include improved solvency monitoring and capital adequacy requirements, strengthened corporate governance, promotion of digital innovation while safeguarding consumer protection, enhanced cross-border collaboration with WAMZ counterparts, and the modernization of Liberia’s insurance legal framework.

“These reforms reflect Liberia’s firm commitment to building an insurance sector that is resilient, inclusive, and capable of meeting the needs of our citizens and the broader West African community,” he said.

He recalled that Liberia hosted the ECOWAS Brown Card Scheme Annual General Assembly in November 2025, describing it as further evidence of the country’s leadership in promoting cross-border insurance cooperation.

The CBL Governor also addressed the long-standing fragmentation of insurance regulation in Liberia, noting that although the Central Bank assumed supervisory responsibility in 2010, certain aspects of insurance oversight remained under other institutions.

Recognizing the sector’s importance to financial deepening and consumer protection, he said Liberia enacted the Insurance Act of 2014, which placed regulatory authority under the Central Bank of Liberia.

This mandate, he added, was strengthened by the Amended and Restated Central Bank of Liberia Act of 2020, which empowers the Bank to guide the transition toward an Independent Insurance Commission.

“A new draft Insurance Commission Act has since been drafted and submitted to the National Legislature. Once enacted, this Commission will assume full regulatory authority of the sector, thus cementing and enhancing regulatory autonomy, efficiency, and sector credibility,” Governor Saamoi disclosed.

He acknowledged the technical and advisory support provided by the National Insurance Commission of Nigeria (NAICOM), the Insurance Commission of Ghana, CIMA, and other WAMZ peers.

Emphasizing that regional integration cannot succeed without collaboration, Governor Saamoi quoted former Nigerian President Olusegun Obasanjo:

“If you want to go fast, go alone. If you want to go far, go together.”

He stressed that a harmonized insurance sector would strengthen financial stability, boost investor confidence, and support ECOWAS’ broader agenda of economic and monetary integration.

Despite progress, he acknowledged persistent challenges across the WAMZ, including low insurance penetration, limited digital infrastructure, shortages in actuarial and supervisory expertise, and rising exposure to climate and cyber risks.

Addressing these challenges, he said, would require sustained investment in innovation, digital transformation, and human capital development.

Governor Saamoi also highlighted Liberia’s improving macroeconomic fundamentals, describing them as essential for a thriving insurance sector.

“Our real GDP growth is estimated at 5.1 percent for 2025, up from 4 percent in 2024, and expected to maintain this trajectory in the medium term,” he said.

He added that inflation declined to 4 percent at the end of 2025, while the exchange rate remained relatively stable within the ±10 percent ECOWAS convergence band.

Speaking on behalf of Dr. Abdulsalam Sikiru Abidemi, Director-General of WAMI, Supuwood Y. Tarpeh, Director of Internal Audit at the Institute, echoed the call for harmonized insurance regulation.

“This 14th Meeting presents yet another opportunity for us to consolidate progress made towards harmonising insurance regulation in the WAMZ,” Tarpeh said.

He highlighted the work of the Expert Committee on Insurance Supervision (ECWAMZ), which is developing a Regional Policy Framework and Model Insurance Law, noting that the adoption of a concept notes, terms of reference, a harmonization roadmap, and a supervisory gap-assessment dashboard has laid a solid foundation for deeper integration.

Tarpeh also pointed to rapid global changes in insurance driven by parametric insurance, AI-driven underwriting, InsurTech platforms, digital distribution channels, and climate-risk insurance mechanisms, urging regulators in the region to adapt while protecting consumers.

“Our region must strategically position itself to adopt and regulate these innovations while ensuring consumer protection and market stability,” he said.

In closing, Governor Saamoi reaffirmed the Central Bank of Liberia’s commitment to sound insurance supervision and regional cooperation.

“Strong regulation protects policyholders, enhances investor confidence, and ensures sustainable growth of the sector,” he said.

He urged delegates to ensure that the outcomes of the WAISA meeting translate into concrete actions that strengthen supervisory coordination and accelerate the modernization of insurance markets across the WAMZ.

Daily Observer