…sets to announce new capital requirement by end of year
- insurance industry pays average claim of GHS4m each day
The National Insurance Commission (NIC) says it will learn from the Bank of Ghana (BoG) before announcing a new minimum capital requirement for insurance companies by the end of this year.
However, some industry players have consistently called on the NIC to provide timelines and details needed to raise the minimum capital for the sector to enable them to prepare adequately for the process.
Speaking to the Goldstreet Business on the sidelines of the launch of the ‘Life Guard Plan’, an insurance policy by the GN Life Insurance, Head of Supervision at the NIC, Mr. Seth Eshun, said the regulator is working towards the plan to name the amount involved
“The amount will definitely differ from the current GHS15 million for insurance companies and the GHS45 million being paid by reinsurance companies. The figures are still being discussed,” he said.
Highlighting on payments of claims and the importance of the insurance industry, he noted that the industry pays between GHS3 million to GHS4 million each day as claims.
“The industry pays an average claim of GHS700, 000 each day for motor insurance and GHS2.6 million for life insurance, and that is a lot of money,” he disclosed.
Ghana has 28 non -life insurance companies, 24 life insurance companies, 81 broking insurance companies and three re-insurance companies registered under the NIC.
Eshun however admitted that there are challenges with regard to insurance penetration rates because of the lack of awareness among the larger informal sector on the benefits of insurance.
“The insurance market is still very fertile looking at the chunk of the population that isn’t covered. The NIC will soon implement notable strategies to increase penetration rate” he disclosed.
By Wisdom Jonny-Nuekpe