Five Insurance Companies Crash

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Liberia’s insurance industry is in a meltdown as the Central Bank of Liberia (CBL) announces the temporary takeover of five companies including the long serving African Insurance Company of Liberia (ALCOL).

The Central Bank said in a statement released Friday, June 15, its assessments show the companies have significant capital deficits and have consistently fallen below the capital requirements for licensed insurance companies since the first quarter of 2017.

According to the CBL, the five insurance companies have been placed under Provisional Administration (PA) to protect customers’ interest and promote the safety and soundness of the Insurance Industry and the interests of the policyholders.

Liberia’s insurance industry is in a meltdown as the Central Bank of Liberia (CBL) announces the temporary takeover of five companies including the long serving African Insurance Company of Liberia (ALCOL).

The Central Bank said in a statement released Friday, June 15, its assessments show the companies have significant capital deficits and have consistently fallen below the capital requirements for licensed insurance companies since the first quarter of 2017.

According to the CBL, the five insurance companies have been placed under Provisional Administration (PA) to protect customers’ interest and promote the safety and soundness of the Insurance Industry and the interests of the policyholders.

Companies affected by the CBL’s action are the African Insurance Corporation of Liberia (AICOL); Capital Express Assurance Company (CEAC); Continental General & Life Insurance Corporation (CGLIC); Family Dollar Universal Insurance Services Inc. (FDUIS); and the Global Trust Assurance Company (GTAC).

The action will preserve the business and the assets of these troubled insurance companies and will protect the interests of policyholders or other customers of these insurers, the statement said.

According to the statement, “the Provisional Administrators (PAs) placed in these institutions are empowered to take all necessary actions in preserving the business/assets of the companies and to protect the interests of the policyholders. Action on behalf of, or for the account of the affected companies that occur without the prior approval of the Provisional Administrators after June 15, 2018, shall be void and of no effect.”

“The move by the CBL is in keeping with the authority vested in it by the Insurance Act of 2013 and consistent with Sections 10.10 and 10.12. It followed an assessment by the Bank of the capital positions of the five companies for the period ended March 2018,” the CBL said.