Insurance companies cooperating with new capital requirement

Kofi Andoh, Deputy Insurance Commissioner for the National Insurance Commission (NIC) has revealed that insurance companies are adhering to the new capital requirement.

The commission increased the capital for insurance companies from GH¢15,000,000 to GH¢50 million.

For the Reinsurance companies, it was moved 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.

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, according to the NIC.

The total assets of the insurance sector as of 2018 is in excess of GH¢6 billion.

Mr Andoh said in an interview with Citi News that although the companies have raised some concerns regarding the new requirement, they are all cooperating.

“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,” he said.