Insurance companies submit recapitalization plans to NIC ahead of deadline

The National Insurance Commission (NIC) says 95 percent of insurance companies have submitted their plans to recapitalise their operations.

This follows an August 30th, 2019 deadline set by the NIC for the insurance industry to present their plans following the increment in the minimum capital requirement for insurance companies.

“Most of the insurance companies have submitted. There were some who could not meet it due to certain peculiar issues. They needed a little bit of extension. About 95% of all the insurance companies and the brokerage companies have submitted,” Head of Supervision at the NIC, Seth Eshun said.

The NIC increased the capital for insurance companies from GH¢15 million to GH¢50 million and that of Reinsurance companies from GH¢40 million to GH¢125 million.

That for Insurance Broking companies was also been increased from GH¢300,000 to GH¢500,000.

The companies have up to June 30, 2021, to recapitalize.

According to Mr. Seth Eshun, his outfit is compiling all information received by the various companies.

“We are in the midst of compiling all that information that we have received from all those firms and after that, the commission will make a decision on the next steps on that.”

The NIC also revealed that there are 142 regulated insurance firms made up of 24 life insurance companies, 3 reinsurance companies, 29 non-life insurance companies, and 85 insurance brokers with the total assets of the insurance sector as of 2018 is in excess of GH¢6 billion.