The National Insurance Commission (NIC) says it is using the first quarter of 2020 to streamline the submitted recapitalization plans of Insurance companies, to ensure that the companies adopt workable recapitalization strategies before the deadline of June 30, 2021.
The NIC last year increased the capital for insurance companies from GH¢15 million to GH¢50 million and that of Reinsurance companies from GH¢40 million to GH¢125 million. That for Insurance Broking companies was also been increased from GH¢300,000 to GH¢500,000.
Speaking to Citi Business News about the progress towards recapitalization, the Commissioner of Insurance, Justice Yaw Ofori, said they will work to ensure that the insurance sector is stronger and well positioned to serve the growing demands on Ghana’s Insurance players.
“What has happened so far is that we’ve taken time to look at their recapitalization plans, reviewed them and given appropriate advice on reworking their plans. Within the first quarter we are going to sit down one on one with them, because we don’t want to wait till it’s too late for them to put in workable plans. We’ll be monitoring them in all of this to ensure that they are going according to the plan which we find acceptable.”
Insurance companies submit recapitalization plans to NIC ahead of deadline
The National Insurance Commission (NIC) says 95 percent of insurance companies have submitted their plans to recapitalise their operations.
This follows an August 30th, 2019 deadline set by the NIC for the insurance firms to present their plans following the increment in the minimum capital requirement.
“Most of the insurance companies have submitted. There were some who could not meet it due to certain peculiar issues. They needed a little bit of extension. About 95% of all the insurance companies and the brokerage companies have submitted,” Head of Supervision at the NIC, Seth Eshun said.
According to Mr. Seth Eshun, his outfit is compiling all information received from the various companies.
“We are in the midst of compiling all that information that we have received from all those firms and after that, the Commission will take a decision on the next steps.”
The NIC also mentioned that there are 142 regulated insurance firms made up of 24 life insurance companies, 3 reinsurance companies, 29 non-life insurance companies, and 85 insurance brokers, with a total assets of the insurance sector as of 2018 being in excess of GH¢6billion.