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The
Central Bank of Lesotho (CBL) will hold a Workshop
on Tuesday, 4th July 2006 at 8.30 a.m.,
with a view to obtain stakeholders comments on the
draft Insurance Bill, before it is presented to
Cabinet by the Honourable Minister of Finance and
Development Planning.
The
Workshop comes amidst realisation that the current
insurance legislation, the Insurance Act 1976,
despite twice being amended, does no longer address
the prevailing challenges in the insurance
industry. These challenges are attributable to the
generally widened scope of the operations by the
insurance sector in the country. On the other hand,
the current Act does not provide the Central Bank of
Lesotho, as a regulator, with the legal framework
necessary to enable it to achieve effective
regulation and supervision of the insurance sector
that can be implemented and brought into line with
the international standards.
It is
upon realising these intrinsic weaknesses in the Act
that CBL enlisted assistance from the World Bank and
the International Monetary Fund to develop a
legislative and supervisory framework that will
enable it to properly supervise the insurance market
in Lesotho. Technical assistance was offered under a
programme called the Financial Sector Reform and
Strengthening Initiative (FIRST) project. The
purpose of the project is to ensure that the
insurance industry in Lesotho is strengthened
through appropriate regulation and supervision so
that it can prudently meet the demands of the
economy for risk protection and stimulate growth in
the investment sector. The CBL and FIRST
Initiative have developed a draft Insurance Bill,
which will be put before the stakeholders for
endorsement.
Participants in this Workshop will be drawn from the
insurance companies and, brokers; Ministry of Trade,
Industry and Marketing; Ministry of Finance and
Development Planning; Ministry of Law,
Constitutional and Parliamentary Affairs; and the
National University of Lesotho, Faculty of Law.
For
more information, please contact Mr. Thato Mohasoa –
Chief, Public Relations a.i. at 22314281 ext. 2139. |
