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.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana