Ghanaian Insurance companies to submit recapitalisation plans by Friday, August 30

In an interview with Accra-based Citi FM, the Deputy Insurance Commissioner of the National Insurance Company (NIC) said they have been engaging all stakeholders to make sure this is done.

Kofi Andoh said “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.”

Increase in capital for insurance companies

The NIC increased the capital for insurance companies from GH¢15 million to GH¢50 million and that of Reinsurance companies from Ghc40 million to Ghc125 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.

According to the NIC, the new requirement 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 more than GH¢6 billion.