To develop an effective system of prudential regulation that would ensure the solvency of insurance companies, provide for a sound, fair, effective interaction between the insurance companies, insurance intermediaries, the insured and the general public, and strive to be the custodian of the national interest at large as relates to insurance matters in Sierra Leone.
To lead the Sierra Leone Insurance Industry to the stage where it will largely be self regulatory, with well developed structures within its operations that would ensure it’s continued growth and prosperity, having the capacity to operate independently, with a strong sense of accountability and social responsibility, so as to become a model and a leading financial regulator in the West Africa sub region.
The Functions and Organization of the Sierra Leone Insurance Commission. The Sierra Leone Insurance Commission covers and broad areas of:
- Licensing and Registration of insurance operatives – underwriters, brokers, loss adjusters and agents;
- Solvency supervision of insurance companies.
- Market place supervision and consumer protection;
- Policy making and establishment of the industry guidelines, and
- National and International public relations
The Organizational Structure of SLICOM, Which Is Intended To Perform The Functions Described Above, Is As Follows:
- The Directorate
This is the Board of Directors, which section 4 of the Insurance Law, 2000 is the governing body of the Commission.
- The Executive Office
This is the office of the Commissioner of Insurance, as the Chief Executive Officer of the Commission is responsible for the day-to-day administration of the Commission.
The Functional Department
Actual internal day-to-day management of the Commission is carried out by the three Functional departments, namely:
- The Office of the Secretary/Legal & Administration.
- Provision of secretarial services to the Board of Directors,
- Overseeing the legal, administrative and personnel matters of the Commission; and
- The Administration of ancillary committee of the Commission such as the Complaints and Settlements Bureau.
- Director of Technical/ Compliance
- Licensing and the registration of underwriters, brokers loss adjusters and agents:
- Collection and analysis of market data; claims ratio, premium ratio, market Share. Retention ratio, Solvency Margin, and the Compensation Fund etc.
- Liaison with and supply of information of external agencies.
- Director of Finance
The responsibility of this Office include the following:
This office is responsible for the technical work of the Commission, which includes:
This office is responsible for the internal financial management and Bookkeeping of the commission itself, as well as the external financial supervision of the industry.
Most of the financial supervision is carried off-site, through the analysis and evaluation of the annual financial statements, which are required to be filed by registered insurers and brokers, every year. An on site supervision
Unit, called the Inspectorate and Compliance Division, has been established with relevant professional and technical staff.
Funding and Budgetary policies of the Sierra Leone Insurance Commission (SLICOM)
It is an internationally accepted principle by which financial institutions such as the IMF, the World Bank, and the International Association of Insurance supervisors (IAIS) operate.
The Sierra Leone Insurance Commission (SLICOM) is established by law as an independent body corporate with the power to discharge all its duties, with an independent Board of Directors appointed by Government.
The financial independence of the Commission is provided by section 10 of the Insurance Act 2000, which allows the Commission to raise funds from several sources, including the insurance industry, international agencies, and grants from the Government.
You will agree with us that without reasonable income, the Commission could hardly undertake any activity that could have an effect on the insurance market.
Highlights of the Insurance Industry
The basic function of an insurance regulator is to ensure the financial soundness of operator in the market. And presently all eight registered insurance companies in Sierra Leone have financially sound and well managed companies with proper reinsurance arrangements overseas.
The Insurance Act
The Insurance Act 2000 established the Sierra Leone Insurance Commission effectively in 2004 as an autonomous body. The duty of SLICOM is to regulate and monitor the activities of the Sierra Leone Insurance Industry to a point where it would be largely self regulatory, with a strong sense of accountability and social responsibility to the people of this nation.
As an Insurance Supervision, our foremost focus is to create the enabling environment where public confidence could be enhanced and sustained in the insurance industry by ensuring that:
- Policyholders are fairly treated in accordance with the terms and conditions of insurance contracts; and
- Insurance Companies operating in the Sierra Leone Market are financially solvent and capable of delivering on their promises to policyholders.
The functions of the Commission are as follows:
- To ensure strict compliance with the provisions of the Insurance Laws and Regulations, and any other enactment relating to Insurance.
- To license and register insurance operative Underwriters, Brokers, and Agents in Sierra Leone – who transacts insurance business.
- To establish standards for the contact of insurance business through policy making, and the establishment of guidelines, which the industry would have to comply with.
- To approve rates of insurance premiums and commissions in respect of all classes of insurance.
- To protect policyholders, insurance beneficiaries and third parties to any insurance contract.
- To approve standards, conditions and warranties to be applicable to insurance.
- To provide a Complaints Bureau accessible to the members of the public.
- To settle such insurance claims as may be referred to it by parties to any insurance contract.
- To ensure adequate insurance protection for all national strategic assets and properties, including motor vehicles.
- To promote the insurance market so that it could be sound and efficient for the betterment of the country.
- To supervise and control transaction between local insurers and their reinsurers abroad.
- To undertake public education both locally and internationally on general insurance business.
- To generally discharge such other functions as are deemed necessary or incidental to the above functions.
To enable the Commission perform these functions for the realization of it aims and objectives, the Commission should work amicably with the locally registered companies in the industry. These include the Sierra Leone Insurance Association (SLIA), Sierra Leone Insurance Brokers Association (SLIBA), and the Sierra Leone Insurance Agents Association (SLIAA).
The Commission also has to be in league with international organizations such as the International Association of Insurance Supervisors (IAIS), the Africa Insurance Organization (AIO), the West Africa Insurance Companies Association (WAICA), and the West Africa Insurance Institute (WAII).
Though an independent regulator, the Commission reports annually to, and works closely with the Ministry of Finance, to ensure that its actions are in tune with the government’s overall economic and financial policy.