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New capital requirement : NIC to begin auditing of insurance companies

The National Insurance Commission, NIC says it will soon begin the auditing of insurance companies in the country.

NIC said the step it to check the viability of the firms and their ability to meet the new minimum capital requirement.

Insurance companies have up to the end of this year to submit their new minimum capital requirement plan.

Speaking to Joy FM, Commissioner of Insurance,  Justice Yaw Ofori said, “Revising the minimum capital requirement is not the only thing that needs to be done, there are other things that need to be done for example concentrating on risk base supervision and solvency requirement, corporate governance and also change the claim payment culture and making sure that we have some compulsory insurances in our system supported by the Insurance Act, so minimum capital requirement is one of the things we needed but in addition to that we still need other factors to make our insurance sector stronger. There is always a mechanism to actually deal with these things and so we have something in place should the worse happen as I said in my press release we are going to have one on one discussion with every insurance company to know what their challenges are and see how we can address them so that they can survive.”

NIC announces new minimum capital requirements for insurance companies

The National Insurance Commission, NIC has announced new minimum capital requirements for insurance companies in the country.

A statement from the NIC signed by Commissioner of Insurance, Justice Yaw Ofori said, ” The new Minimum Capital Requirements for the insurance industry will help strengthen the balance sheets of regulated insurance entities, thereby enhancing their underwriting capacity, make resources available for investment in essential technology and the development and distribution of appropriate products which will help increase insurance penetration.

“lncreasing the Minimum Capital Requirement is only one of a number of steps being taken by the NIC to develop a robust insurance industry. Other steps include improving strengthening the regulatory framework, implementation of Risk Based Supervision and solvency requirements, strengthening risk management and Corporate Governance structures and practices within the industry and thus improving the claims payment culture.”

By Justice Kofi Bimpeh

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