The new minimum capital requirement set by the National Insurance Commission (NIC) has been reached by 98 per cent of insurance businesses.
New minimum capital requirements for insurance market participants were announced by the regulator in June 2019.
The minimum capital requirement for life and non-life firms was raised from GHC 15 million to GHC 50 million, while it was raised from GHC 40 million to GHC 125 million for reinsurance companies.
While the minimum capital requirement for reinsurance brokers was maintained at GH1 million, insurance brokers’ minimum capital was increased from GH300,000 to GH500,000.
By June 2021, all enterprises in the sector were expected to have met the new minimum capital requirements.
The COVID-19 epidemic, however, caused the regulator to extend the deadline by six months.
According to Moses Ackah-Jayne, Head of Marketing and External Relations at NIC, practically all insurance companies have reached the necessary capital one year after the deadline extension.
“All the companies that are currently operating have met the minimum capital requirements. There are a few discussing other details, about 98 per cent largely have all met the minimum capital,” Mr Ackah-Jayne said.
