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Liberia is seeking technical support from Nigeria’s National Insurance Commission (NAICOM) as it works to strengthen insurance regulation, improve risk-based capital supervision and build a more financially resilient insurance industry. The engagement reflects growing regional interest in Nigeria’s insurance reforms and the potential for cross-border cooperation to strengthen regulatory capacity across Africa.
The Central Bank of Liberia (CBL), which regulates the country’s insurance industry, requested the support during a working visit to NAICOM by a delegation led by Mulbah Francis Bowah. The delegation identified Nigeria’s regulatory experience as a potential model for improving insurance supervision and advancing institutional reforms.
Liberia identifies priority areas for regulatory cooperation
According to NAICOM, the Liberian delegation highlighted risk-based capital implementation, risk assessment and mitigation, and insurance supervision and examination methodologies as priority areas for technical cooperation.
Bowah said Liberia remained committed to strengthening its regulatory framework and expected Nigeria’s experience to support ongoing reforms and the development of a more resilient insurance market.
He described Nigeria as a strategic partner in advancing insurance regulation across Africa and expressed appreciation for NAICOM’s willingness to share its technical expertise and practical experience.
NAICOM’s Deputy Commissioner for Finance and Administration, Ekerete Ola Gam-Ikon, received the delegation on behalf of the Commissioner for Insurance, Olusegun Ayo Omosehin.
Gam-Ikon reaffirmed the commission’s readiness to share regulatory experience and best practices with other African jurisdictions. He highlighted regional cooperation, institutional capacity building and knowledge exchange as important elements in strengthening insurance supervision.
Nigeria’s recapitalisation reforms provide a reference point
The engagement follows Nigeria’s insurance industry recapitalisation under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which introduced higher minimum capital requirements for insurance and reinsurance companies.
NAICOM reported that 50 insurance and reinsurance companies had met the new capital requirements by the end of the compliance period on 31 July 2026. The reforms are intended to strengthen the industry’s financial foundations and improve insurers’ capacity to meet their obligations.
For Liberia, Nigeria’s experience offers potential lessons on the relationship between capital adequacy, risk management and effective regulatory oversight. However, higher capital requirements alone cannot guarantee a resilient insurance market.
Sustainable performance also depends on sound underwriting practices, effective corporate governance, reliable financial reporting and the prompt settlement of legitimate claims. These elements help ensure that stronger capital positions translate into greater financial stability and improved policyholder protection.
Risk-based capital shifts the focus towards solvency risks
Risk-based capital supervision moves regulatory assessment beyond whether insurers meet prescribed minimum capital thresholds. It also considers whether each insurer holds sufficient capital in relation to the risks associated with its operations and portfolio.
This approach can give regulators a clearer view of an insurer’s financial vulnerabilities and help identify potential solvency concerns before they escalate. It can also encourage insurers to adopt more disciplined underwriting and strengthen their internal risk management frameworks.
For supervisory authorities, implementing such a system requires appropriate assessment methodologies, consistent examination practices and the ability to evaluate the risks facing different insurers. These capabilities are particularly important where insurance markets vary in size, structure and technical maturity.
Technical capacity remains critical to implementation
The transition to risk-based capital supervision can place significant demands on insurance companies. Insurers may need to invest in actuarial expertise, risk modelling, data management and internal controls to assess their exposures accurately and demonstrate compliance with supervisory requirements.
Regulators also need sufficient technical capacity to evaluate complex insurance portfolios consistently and determine whether capital levels adequately reflect the risks being undertaken. Supervisory frameworks must be sufficiently robust to protect policyholders while remaining responsive to the realities of domestic insurance markets.
For Liberia, cooperation with NAICOM could provide access to practical experience in these areas as it considers how to strengthen its own regulatory framework.
Regional knowledge exchange could strengthen insurance oversight
The engagement highlights the role of regulatory cooperation in supporting insurance market development across Africa. By sharing experience in capital regulation, risk assessment and supervisory practices, regulators can build institutional capacity and draw on lessons from reforms undertaken in other jurisdictions.
As Liberia pursues improvements to its insurance oversight framework, the value of the engagement will depend on how effectively the lessons shared can be adapted to local market conditions. For both countries, stronger supervisory capacity and more effective risk management remain important to building resilient insurance markets and sustaining confidence in the insurance sector.
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