{"id":600492,"date":"2019-03-19T22:47:31","date_gmt":"2019-03-19T22:47:31","guid":{"rendered":"
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Deputy Minister of Finance has\u00a0reiterated government\u2019s support for the National Insurance Commission (NIC) in its quest to recapitalize the insurance industry through increasing of the minimum capital requirements.<\/p>\n

Kweku Kwarteng\u00a0said the sector plays a key role in the financial services sector hence the need for a strong foundation to deliver on its mandate.<\/p>\n

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He was speaking at the JoyBusiness Financial Services Forum on Tuesday in Accra with a focus on the insurance sector.<\/p>\n

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The forum is on the theme: Recapitalising to grow; a panacea for expansion, penetration and big business underwriting?<\/p>\n

According to the Oxford Business Group 2018 Report, the Ghanaian insurance industry has experienced a decade of rapid growth, and the proliferation of private companies and brokers.\u00a0<\/p>\n

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Government\u2019s efforts to strengthen the financial sector and new leadership at the NIC\u00a0contributed to the rising optimism in late 2017.<\/p>\n

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The regulator and the government are aiming to increase insurance penetration to 10% of GDP.\u00a0<\/p>\n

The growth of new business lines such as bancassurance, micro-insurance and mobile insurance should help bring this target within reach, although there is still a lot of progress to be made.<\/p>\n

The insurance industry is likely to recapitalize, with stated capital jumping by about 233 %, according to the industry regulator, the National Insurance Commission, NIC.\u00a0<\/p>\n

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The plan is for the stated capital of life and non-life insurers to increase from the present GH\u00a215 million to GH\u00a250 million.\u00a0<\/p>\n

The capitals of reinsurance companies would also go up from the GH\u00a240 million to GH\u00a2125 million (212% increase) while that of insurance brokers would move to GH\u00a2500,000, presenting a 66.7 per cent increase from the present GH\u00a2300,000. \u00a0
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