The Essential Need for Strong Insurance Regulation in Liberia

Chief Judge Eva Mappy-Morgan advocates for a National Insurance Commission in Liberia, emphasizing the necessity of a robust regulatory framework to transform the insurance sector. She highlights historical challenges and recent improvements, calling for updated legislation and alignment with international standards to ensure consumer protection and market growth.

Eva Mappy-Morgan, the Chief Judge of the Commercial Court of Liberia and a professional in the insurance sector, has underscored the necessity of a robust regulatory framework to establish a National Insurance Commission in Liberia. During a workshop organized by the Central Bank of Liberia (CBL) on March 5, 2025, she highlighted that effective regulation and oversight are essential to the transformation of the nation’s insurance industry.

Judge Mappy-Morgan articulated that a comprehensive and well-documented standard must underpin the establishment of the insurance commission. She praised Central Bank Governor Henry F. Saamoi for prioritizing insurance reform during his tenure and recognized his initiatives aimed at driving crucial regulatory changes.

The Judge provided insights into the historical landscape of Liberia’s insurance industry, which has been dominated by foreign firms due to the local companies’ struggles with capital, expertise, and regulatory issues. Despite these challenges, she noted a resurgence of Liberian-owned insurance businesses and increased competitiveness within the market as positive developments.

She further asserted that the creation of a National Insurance Commission is critical to ensuring effective regulation and supervision, thereby protecting policyholders and fostering market growth. This commission would oversee compliance, enhance consumer protection, prevent malpractice, and promote responsible business practices.

Additionally, Judge Mappy-Morgan emphasized strong risk management as a core function of the commission, thus reinforcing insurers’ stability and capacity to meet their obligations. She advocated for the alignment of Liberia’s insurance regulations with international standards to position local firms competitively in the global market.

Drawing comparisons with successful regional models, she referenced Ghana and Nigeria’s insurance commissions as examples that have bolstered industry oversight and consumer confidence. She believes that similar reforms in Liberia could stimulate economic growth and enhance market stability.

Judge Mappy-Morgan also called for a review of Liberia’s outdated Insurance Law of 1973 to modernize its legal framework according to current industry conditions. With a commitment rooted in her education from the West African Insurance Institute, she pledged to align Liberia’s insurance regulations with best practices.

Furthermore, she affirmed the Commercial Court’s dedication to resolving insurance disputes efficiently, emphasizing the Court’s role in overseeing insurance and reinsurance matters swiftly and in compliance with legal mandates. The Judge concluded by reaffirming the importance of timely adjudication in contributing to confidence in the insurance sector.

In summary, Chief Judge Eva Mappy-Morgan has advocated for the establishment of a National Insurance Commission in Liberia to bolster regulatory frameworks necessary for industry growth and consumer protection. Highlighting historical challenges and recent positive developments, she emphasized the importance of aligning regulations with international standards and fostering competition. The Judge’s commitment to reform and the efficient resolution of disputes underlines the pressing need for a robust insurance framework to enhance confidence in Liberia’s insurance market.

Original Source: www.liberianobserver.com