[ 2016-08-16 ]

Commissioner of Insurance at the NIC Lydia Lariba Bawa

8 local insurance companies risk losing license
About 8 indigenous insurance companies risk losing
their licenses if they fail to meet the new
minimum recapitalization requirement set by the
Nation Insurance Commission (NIC).

Citi Business News has learnt about 10 out of 46
insurance companies are yet to meet the new
recapitalization requirement.

Most of the 10 are domestically owned.

Also 3 re – insurance companies are also yet to
meet the deadline.

According to the NIC it has fixed September 30,
2016 as the deadline for the remaining 10
insurance companies to recapitalize or they risk
losing their licenses.

Speaking to Citi Business News, the Deputy
Commissioner at the National Insurance Commission,
Simon Nerro Davor said the commission will crack
the whip if the 10 companies fail to meet the
recapitalization requirement.

“As at now we are of the view that any insurance
company who is not able to meet the minimum
requirement which was issued in our solvency
framework last year by the end of the third
quarter of this year, we will have to take action
against.

Everything we do is according to the dictates of
the insurance law. The insurance law is so clear
that if you are not able to meet the minimum
capitalization requirement then meaning a certain
regulatory actions has to be taken against you.”
He said.

Simon Nerro Davor further stated that “when we
start the regulatory process it could lead to
liquidation, it can lead to transfer of assets or
lead to anything. So we are saying that all the
insurances companies have up to the end of the
third quarter to capitalize or all the measures
recommended in the insurance law will be followed
to have them taken out.

The NIC, last year, raised the minimum
capitalization requirement for insurance companies
to 15 million cedis and 40 million cedis for re
– insurance companies.

This formed part of moves to build the capacity of
the local insurance industry to be able to
underwrite big ticketing transactions like
insuring the petroleum upstream activities such as
the insuring of the Floating Production Storage
and offloading vessels among others.

Source - citibsinessnews.com

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