The National Insurance Commission recently announced a postponement of the initial deadline for meeting the new minimum capital requirements for insurers. In June 2019, the minimum capital requirement for life and non-life companies was increased from GHC 5 million to GHC 50 million with that of reinsurance companies moved from GHC 40 million to GHC 125 million. The stated capital of insurance brokers was also increased from GHC 300,000 to GHC 500,000 while that of reinsurance brokers was maintained at the current GHC 1 million. All companies in the sector were expected to meet the new requirement by June 2021.
According to the NIC, among other reasons, its realization of the fact that the COVID-19 pandemic and its global effect may hinder the pace at which most of these insurance companies recapitalize influenced the extension. Insurers now have until January 2022 to meet the new requirements. It is expected that this new measure will clean up the insurance space and bolster confidence in the insurance industry in Ghana.