Chief Financial Officer of Old Mutual Ghana, Clara Amarteifio-Taylor, is confident her outfit will meet the new minimum capital requirement set by the National Insurance Commission (NIC).
She gave the assurance that her outfit has put in place realistic measures to meet it even before the June 2021 deadline.
The NIC increased the minimum capital requirements of all insurance companies as a means to strengthen the insurance sector.
There are fears this increase could lead to the eventual collapse of some insurance companies.
But Clara Amarteifio-Taylor says the increase will help in creating a strong and resilient insurance sector, adding that her outfit is positioned to meet the requirement.
For Life and Non-life insurance companies, the minimum capital requirement has been increased from GH¢15 million to GH¢ 50 million.
For reinsurance companies, the minimum capital requirement has been increased from GH¢ 40 million to GH¢125million.
For insurance broking companies and loss adjusters, the minimum capital requirement has been increased from GH¢300,000 to GH¢500,000. The minimum capital requirement for reinsurance broking companies has however been maintained at GH¢ 1 million.
The affected institutions have been given up to June 30, 2021, to meet the new requirements.
The National Insurance Commission directed the affected institutions to submit their initial recapitalization plan by August 31, 2019, but insisted “injection of property will not be accepted.