Insurance operating within the insurance industry have up to Friday, 30th August 2019, to submit their recapitalization plans to the National Insurance Commission following the increment in the minimum capital requirement for insurance companies.
The NIC increased the capital for insurance companies from GH¢15,000,000 to GH¢50 million and that of Reinsurance companies from GH¢40 million to GH¢125 million. That for Insurance Broking companies has also been increased from GH¢300,000 to GH¢500,000.
The companies have up to June 30, 2021, to recapitalize.
“We have been engaging the companies since the announcement was made. And despite a few concerns raised by some of them, they are all cooperating. And they are all at submitting their capital plans by the end of this month,” Kofi Andoh, Deputy Insurance Commissioner told Citi Business News.
The NIC has explained that the new arrangement is part of efforts to stabilise, strengthen and enhance the capacity of the financial services sector.
It is also to clean the sheets of regulated insurance entities and ultimately, enhance their underwriting capacity.
According to the NIC, 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.
The total assets of the insurance sector as of 2018 is in excess of GH¢6 billion