NIC will by end of 3rd quarter know insurance companies that can meet new capital requirements- Dr Ofori

The National Insurance Commission, NIC says they will by the end of the third quarter have a clear figure of companies that can meet the new capital requirement.

According to the commission, insurance companies who are unable to meet the capital requirement by the 31st December deadline will have their licences withdrawn. 

Commissioner of Insurance, Dr Justice Yaw Ofori said an appreciable number of the companies will be able to meet the capital requirement following the final assessment of their books. 

"Most of them have brought in their work plan on how they are actually going to achieve the 50 million cedis requirement, so it is in progress and by the end of the third quarter we will actually have a clear figure of those companies who might be able to make it. 

"Most of them are doing all they can to improve their minimum capital requirement. Definitely, some will face challenges but the majority of them are doing what they can to meet the minimum capital requirement."

New capital requirement

NIC in 2019 announced new minimum capital requirements for insurance companies in the country.

A statement from the NIC signed by Commissioner of Insurance, Justice Yaw Ofori said, " The new Minimum Capital Requirements for the insurance industry will help strengthen the balance sheets of regulated insurance entities, thereby enhancing their underwriting capacity, make resources available for investment in essential technology and the development and distribution of appropriate products which will help increase insurance penetration.

"lncreasing the Minimum Capital Requirement is only one of a number of steps being taken by the NIC to develop a robust insurance industry. Other steps include improving strengthening the regulatory framework, implementation of Risk Based Supervision and solvency requirements, strengthening risk management and Corporate Governance structures and practices within the industry and thus improving the claims payment culture."

 

 

 

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