Following a proposed recapitalisation plan for the industry by the National Insurance Commission, the country’s Insurance companies are now likely to double their existing capital requirement to remain in business.
The development follows a hint from the newly appointed Commissioner of the National Insurance Commission(NIC), Justice Yaw Ofori.
According to the NIC boss, direct insurance and re-insurance companies were as of last year – 2016 expected to increase their minimum operating capital to Ghc15 & 40 million respectively.
Speaking to the media on the development at the sidelines of the launch of Loyalty Insurance Companies, Mr. Ofori said: “I think even if we go a 100%, it will be good because the more capital you have the stronger you are, and that means international companies are ready to do business with you and that is how it should beâ€.
He noted that becoming an effective or an international insurance company required that you (the insurance company) become big – increase your capital base.
Although not specifying on any particular one, he claimed that one insurance company in other countries is worth more than the total of all its counterparts Ghana.
In addition, the NIC commissioner reiterated the commitment of the insurance regulator in strengthening the industry by stating that: “[they] are regulators and everything that [they do is] for the industry, whatever we do we bring [the insurance industry stakeholders] along. We don’t want to sit down and then make rules which are not workable, so we will sit down and share ideas and see the way forwardâ€.
He urged the stakeholders to put in measures to facilitate prompt payment of claims to boost public confidence in them.
In his own words, “all stakeholders in the insurance industry have a role to play to reverse the low confidence Ghanaians have in the insurance industry. Key among these stakeholders is the insurers. Policyholders and claimants expect nothing but prompt and adequate payment of claimsâ€.
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