[ 2017-05-08 ]

Commissioner of Insurance at the NIC Lydia Lariba Bawa

Insurance recapitalization: Defaulter to lose license by mid 2017
All but one of the fifty insurance companies have
met the new minimum capital requirement set by the
National Insurance Commission (NIC).

As a result, the company has until June 2017 to
recapitalize in order to escape a possible
revocation of its license.

This is the indication from the Commissioner of
Insurance, Lydia Lariba Bawa.

Her disclosure comes five months after the
expiration of the deadline for the insurance
companies to recapitalize.

“The deadline ended in 2016 and all the
companies have met the minimum capital requirement
except one company,” Madam Lydia told Citi
Business News.

Though the NIC Boss would not readily mention the
company involved, she indicated that the
Commission would be compelled to undertake
remedial action which is likely to involve
revocation of license.

“We’ve given them up to midyear 2017 failure
to do so we will take remedial action,” she
said.

Direct insurance and re-insurance companies were
expected to increase their minimum operating
capital to 15 and 40 million cedis respectively by
the end of last year.

The move forms part of efforts to deepen the
country’s insurance sector.

The NIC has argued that the higher number of
insurance companies made it necessary for mergers
to be formed to build capacity to undertake huge
insurances.

Since the recapitalization, only one merger has
been confirmed; between Regency and NEM
Insurance.

Nonetheless, Madam Lariba Bawa is optimistic the
revision would strengthen Ghana’s insurance
sector.

Source - citibsinessnews.com

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