Insurance companies have met GHS 50 million capital requirement - NIC

Majority of insurance companies in Ghana have met the GHS 50 million recapitalization requirement, according to the Commissioner of Insurance, Dr. Justice Ofori.

He revealed this at the 2021 Chartered Insurance Institute of Ghana Educational Conference and Annual General Meeting.

According to Dr. Justice Ofori, most of the registered insurance firms have met the December 31, 2021 deadline and is hopeful the remaining insurance companies will be able to recapitalise by the end of this month.

“So far, they [insurers] are doing well, most of them have already capitalised beyond the GHS 50 million. We understand some are also trying to catch up…you know the Ghanaian always want to wait till the last minute. I know before the end of the month we will see some miracles.”

In 2019, the NIC announced that all insurance companies must recapitalize by the end of 2021.

Both life and non-life insurers are expected to increase their capital from GHS 15 million to GHS 50 million.

Regarding plans for policyholders, Dr. Ofori said “we have plans in place to ensure that if companies fail to recapitalize, their policyholders will be taken care of. The new act, Insurance Act, 2021 (Act 1061) takes care of that.”

The Commissioner of the NIC, also opined that insurance firms that are unable to raise the set minimum capital requirement will cease their operations.

He however, stated that most insurance firms in the country are working very hard towards attaining the set capital requirement, stating that most of the firms have presented to the NIC their work plan on achieving the capital requirement.

“We are still encouraging the insurance firms to meet the minimum capital requirement by the end of this year. Most of the insurance companies have brought their work plan on how they are going to achieve the Ghs 50 million. So it’s in progress and by the end of the third quarter we will have a clear picture of those who can meet it and those who can’t. But most of the firms are doing all they can to meet the requirement,” he intimated.

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