Debt Exchange: NIC to suspend GHS 50m capital requirement, others
The National Insurance Commission (NIC) in has announced measures aimed at mitigating the impact of the Domestic Debt Exchange Programme on insurance companies.
The measures include a two-year moratorium on the Minimum Capital Requirements (MCRs) and Capital Adequacy Ratio (CAR) for insurers.
During the moratorium period, insurance companies are required to operate in a manner that allows them to pay claims and operating expenses, although they will not be subject to the MCR (currently set at ¢50 million) and CAR (14.2%) regulations.
The NIC intends to develop guidelines to govern the operations of regulated entities during the moratorium.
In addition to the moratorium, the NIC has proposed spreading day-one losses from new bonds over a period of four to five years, a framework to guide the re-pricing of insurance products, revisions to claim payment timelines, and the release of up to 50% of the minimum Statutory Deposit to eligible entities for claims payment.
The NIC stated that these measures will help ensure the stability and sustainability of the insurance industry in as it navigates the impact of the Domestic Debt Exchange Programme.
