Insurance sector shows resilience as companies meet NIC’s new minimum capital requirement
In a remarkable display of resilience and regulatory compliance, the insurance industry in Ghana has achieved an impressive milestone, with nearly 100% of insurance companies meeting the new minimum capital requirement set by the National Insurance Commission (NIC). This accomplishment reflects the sector’s commitment to building a robust and stable insurance industry in the country.
The NIC, recognizing the need for a stronger financial foundation, announced in June 2019 that the minimum assets required by both life and non-life insurance companies would be increased from ¢15 million to ¢50 million. This upward adjustment was part of a broader strategy to enhance the overall stability and viability of the insurance sector in Ghana. Companies were given a two-year deadline to fulfill the new capital requirements, but due to the unforeseen challenges posed by the COVID-19 pandemic, the deadline was extended by an additional six months.
Under the revised regulations, reinsurance companies also saw a significant increase in their capital requirement, from GH₵40 million to GH₵125 million. Insurance brokers and reinsurance brokers also faced higher capital requirements, with the former being raised from GH₵300,000 to GH₵500,000 and the latter set at GH₵1 million. These adjustments were aimed at fostering a more secure and sustainable insurance landscape in Ghana.
According to Moses Ackah-Jayne, the Head of Marketing and External Relations at the National Insurance Commission, the overwhelming majority of insurers in Ghana have successfully met the new minimum capital requirement. He affirmed that all companies currently operating under the NIC’s license have fulfilled the requirements, with only a few engaged in ongoing discussions to finalize the remaining details. Mr. Ackah-Jayne shared this update during the Micro and Small Business Clinics (MSBC) held in Kumasi, where the NIC aims to raise awareness and provide comprehensive information on insurance policies to stakeholders in the informal sector.
As the insurance sector in Ghana continues to evolve and adapt to changing market dynamics, the successful fulfillment of the new minimum capital requirement demonstrates the industry’s commitment to financial stability and customer protection.
