Ghana eyes $5m capital base for insurers

 

Chuks Udo Okonta

 

 

 The Ghanaian National Insurance Commission (NIC) seeks to increase the minimum capital of insurers to the cedi equivalent of US$5 million, Inspen has learnt.

 

This was disclosed in a statement obtained from the Ghana Insurers Association (GIA).

 

In the last recapitalisation, the NIC had based on 2006 legislation, directed every life and general insurance company in the country to have a minimum of US$1 million in core capital.

Prior to this proposed recapitalisation, the NIC had earlier raised the minimum capital for general insurance firms that wish to engage in underwriting policies in the oil and gas industry to recapitalise further to a minimum of US$5 million.

 

The nation’s Commissioner for Insurance, Lydia Bawa, said the industry is presently undergoing transformation that will usher in growth and developments.  

She noted that having been an underwriter for 31 years, in the Ghanaian insurance industry, she is abreast of all the issues in the sector and pledged to reform the industry.

She said perception and mistrust has been the bane of the industry, adding that most people believe insurers take premium and do not pay claims; hence, they do not really trust insurance.

She called on insurers across Africa to intensify awareness about insurance, adding that the apathy on insurance can be change through proactive awareness creation.

She said the insurance penetration in Ghana is about 1.5 per cent, stressing that the country is working towards introduction of Takaful.