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Insurers In Ghana May Lose Their License. See Why

Posted by Osei Agyemang

The National Insurance Commission (NIC) Ghana has given a solid sign to renounce licenses of insurance firms that fail to recapitalise by 31st of December 2021.

The companies have under a half year to meet the new necessity of ¢50 million which is required to place them on favorable standings to have the option to underwrite big-ticket risks.

As indicated by NIC, a calculable number of insurance agencies would have the option to meet the new prerequisite after a final evaluation of their books.

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Before the end of the third quarter, the commission will really have a reasonable figure of those organizations that could possibly meet the prerequisite.

In the mean time, a large portion of these insurance companies are doing everything they can to work on their capital necessity, regardless of some challenges they might be confronting.

According to NIC, in the event that they don’t meet the base capital necessity, they can’t operate. At first, the cutoff time was required to be the end of June 2021, but the insurers whined that the Covid pandemic had upset their plans.

The insurance controller thusly in like manner conceded the organizations an augmentation till the end of 2021.

In June 2019, 51 life and non-life insurers were given two years to build their base capital by in excess of a third to ¢50 million cedis ($8.5 million).

The least sum for reinsurers was also raised to ¢125 million from ¢40 million.

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