Dr. Justice Yaw Ofori, Commissioner of Insurance at the NIC
The National Insurance Commission has touted the ongoing recapitalisation of the insurance industry as one that is key for the economy and sanitization of the sector.
According to the Commissioner of Insurance, Dr. Justice Yaw Ofori, the exercise is rather critical to also improve compliance and the entire insurance value chain.
Speaking at the Annual General Meeting and Education Conference of the West African Insurance Companies Association (WAICA) in Accra, the NIC boss said, “We believe that its implementation will set the platform for marked growth and profitability of companies within the industry.”
“The landscape of insurance on the continent keeps changing due to customer expectation and technological development, and as such insurers must transform their business and operating models to re-emerge stronger than before,” he added.
He further implored on insurance regulators across West Africa to exploit untapped regional opportunities.
Meanwhile, insurance companies have been given up to May 2022 to finalize their recapitalisation processes or risk facing closure.
This comes after the regulator, the NIC earlier gave a December 2021 deadline for insurance companies in the country to meet the recapitalisation requirement after it was extended, due to the outbreak of the Coronavirus pandemic.
The minimum capital requirement for life and non-life companies was raised in 2019 from GH¢15 million to GH¢50 million, while that of reinsurance companies was raised from GH¢40 million to GH¢125 million.
Insurance brokers also had their minimum capital increased from GH¢300,000 to GH¢500,000 while that of reinsurance brokers remained at GH¢1 million.
