Home Business Insurance World Ghana: NIC Commissioner Spells Out Recapitalisation Rules
Insurance World

Ghana: NIC Commissioner Spells Out Recapitalisation Rules

Share
Share

Ahead of recapitalisation deadline in Ghana Insurance Industry, its insurance Commissioner, Justice Ofori has stated categorically that assets that are not registered in the name of insurance companies will not be considered and therefore not counted as part of the 50 million cedis new capitalization.

The Insurance Commission has given insurance companies up till 2021 to recapitalize as part of efforts to clean-up the insurance industry, a move that has sharply divided views within the insurance industry.

Speaking in an interview on TV3’s Business Focus Monday, the Insurance Commissioner said the idea of recapitalization is to ensure a stronger insurance market that is able to pay claims and take on bigger ticket transactions.

When asked about the structure of the 50 million cedis he said, “often for a new company, you should have 40 percent asset,60 percent liquid cash”.

The idea is to ensure that in worse case when there is a crisis the insurance company is able to sell the assets and pay off claims.

Mr. Ofori observed that “there have been instances when owners give assets to the company but on paper the asset is still in the name of the individual which is illegal.”

According to him, once the asset is not registered in the name of the company it.

Source : Ghana Web

Share

Businesstoday Magazine

Businesstoday Conference/Awards

Related Articles

AIICO Insurance Pays N234.4bn As Annuity In 8 years

AIICO Insurance Plc, Paid a total of N234.4 billion as Annuity to...

How Reliable And Comprehensive Data Can Transform Africa Insurance Industry- Dr. Awele Elumelu

Chairperson, Heirs Insurance Brokers & Avon Healthcare Limited, Dr. Awele Elumelu.  ...

AIWA Confab: Dr Elumelu Highlights, Digital Innovation, Microinsurance, PPP As Game Changer For Africa Insurance Industry

From left: President Africa Insurance Women Association, Lady Margaret Moore; Chairman Local...

Q3 2024: Veritas Kapital Assurance Post An Impressive 117% Growth In Profit After Tax

*As GPW Stands At ₦18.540bn Veritas Kapital Assurance Plc has announced a...