Insurance companies in Ghana may have to pay a hundred percent more of their capital requirement to continue operations. This is the indication from newly appointed Commissioner of the National Insurance Commissioner(NIC), Justice Yaw Ofori.
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 2016.
In an interview with Citi Business News, Justice Yaw Ofori was optimistic that a revision of the capital requirement for insurance companies will strengthen the sector.
“I think even if we go a hundred percent, it will be good because the more capital you have the stronger you are, and that means international companies are ready to do business with you and that is how it should be, you can’t be very effective or an international insurance company when you are small,” he said.
He added, “When you go to other countries, one insurance company is worth more than all the insurance companies put together in Ghana”.
Responding to a question on how to further deepen the country’s insurance sector, Mr. Ofori promised to work hand-in-hand with all stakeholders to grow the sector.
“We are regulators and everything that we do, we do it for the industry, whatever we do we bring them along. We don’t want to sit down and then make rules which are not workable, so we will sit down and share ideas and see the way forward”
Touching on other issues in the sector, Mr. Ofori challenged stakeholders to ensure prompt payment of claims in order to increase confidence in the insurance sectors.
“All stakeholders in the insurance industry have a role to play to reverse the low confidence Ghanaians have in the insurance industry. Key among these stakeholders is the insurers. Policyholders and claimants expect nothing but prompt and adequate payment of claims.”
Justice Yaw Ofori spoke to Citi Business News at the sidelines of the launch of Loyalty Insurance Companies.
The company provides insurance policies and risk management in Motor, Fire and Allied Perils, Business Interruption among others.
By: Anita Arthur/citibusinessnews.com/Ghana