NIC to ensure smooth implementation of the Insurance Act

Accra, March. 3, GNA - The National Insurance Commission on Monday announced that it was using a transparent and consultative approach to ensure that all major stakeholders provided the necessary inputs to ensure a smooth implementation of the Insurance Act, 2006 (Act 724). The Insurance Act was passed by Parliament on 29th December last year to replace the Insurance Law, 1989 (PNDC Law 227) with the objective of brining the insurance regulatory powers, practices and procedures in line with international standards.

A statement by the NIC and signed by Ms Josephine Amoah, Commissioner of Insurance said that the Act prohibited the NIC from issuing composite insurance licenses and said existing composite companies were required to separate their Life and Non-Life businesses by the end of December 2007.

"Insurance, Reinsurance and Broking Companies were also required to comply with new minimum capital and other requirements to be licensed to operate in Ghana."

The statement said the changes were expected to improve financial strength and quality of service delivery of the insurance organizations and thereby give better protection to policyholders.

The NIC had approved 17 Non-Life insurance companies, 15 Life insurance companies, two Reinsurance companies, 35 insurance broking companies, one Reinsurance broking company and one loss adjusting company as at February 28, 2008.

The statement said there were pending applications for the insurance companies and insurance broking companies and said the public would be informed about the status of their applications in due course.