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History of The Insurance Industry in Gambia
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Background:
Originally the monitoring, supervision and regulation of the Gambia's insurance industry was under the Finance Ministry whose powers were given to it by the 1974 Act.

However, the responsibility for the administration of the Act was given to the Ministry of Justice, to ensure compliance with the law. The growth in the number of insurance companies called for the appointment of a commissioner of insurance in 1995 at the then existing Finance Ministry. In a move to enhance the overall efficiency of the financial system, the Central Bank was given the authority by the Constitution of 1997 to take over the regulation and monitoring of insurance institutions in The Gambia.

In 1972 there was only 1 insurance company operating in The Gambian market. This was the Northern Assurance Co. Ltd., later joined by the Gambia National Insurance Company Limited. The former was largely foreign owned by the country's colonial masters but was later transformed into a wholly locally owned insurance company and had its name changed to Capital Insurance Co. Ltd.

As for the GNIC it was incorporated in January 1974 as a subsidiary of The Gambia Commercial and Development Bank with a number of institutional shareholders. It was The Gambia's first indigenously incorporated company in this sector. Operating originally from 78 Wellington Street and, after 1985, it re-located to its present premises at 5 Leman Street. In 1979 the Government enacted legislation which established the Gambia National Insurance Corporation to better ensure monitoring of its activities. In 1989 the Government passed the Repeal Act transforming it from a corporation to a company in order to allow for its privatisation.

The Senegambia Insurance Company was incorporated in 1981 but ceased its operations in 1996.

The sectors Association (IAG) was formed on 11th August, 1987, by 3 institutions operating within the industry's sector.

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Companies & Legislation:
Presently there are 12 companies operating in the insurance sector of The Gambia with the latest addition being in December, 2007, of Takaful Insurance Company which is run on Islamic (Sharia) principles.

The necessity  to bring up-to-date the Insurance Act 1974 led The Central Bank of The Gambia to substantially overhaul its provisions. This led to the Insurance Act of 2003  which sought to regulate the business of insurance in The Gambia and to provide for matters connected therewith.

This regulations set out the basic requirements such as paid up capital, the amount of solvency margin, deposits for every class of business, and components of its calculation as well as investment requirements and other regulations.






   
   









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