Some indigenous insurance companies are confident they will meet the industry regulator’s directive on recapitalization. According to them, adequate strategies are being put in place to meet the new requirement.
The regulator of the insurance industry, the National Insurance Commission (NIC), last year revised the minimum capital requirement for insurance and re-insurance companies to 15 and 40 million cedis respectively. Per the new directive, insurance and re-insurance companies have until September 30, 2016 to adjust their minimum operating capital to meet the revised figures. The Head of Business Development at Star Assurance, Justice Amoah Nyarko tells Citi Business News his outfit is hopeful of meeting the new requirement by the NIC. “Basically as an insurance company, I can confirm that we have quite a huge reserve already so when it comes to the issue of recapitalization, I do not think we have any problem,” he remarked. On whether some of the company’s new products are means to attract new customers and eventually work to meet the revised rules, Justice Amoah Nyarko responded in the affirmative. He also stressed on the company’s readiness to deepen its position in the local insurance industry. “With the coming forth of products such as the bancassurance it goes to extend the fact that we are going to increase our premium income the more and to be able to increase our bottom line so we are in as an insurance company to solidify our stance in the industry,” Justice Amoah Nyarko stated. Meanwhile the NIC has threatened that the licenses of defaulting companies by the September 30 deadline will be revoked. “Everything we do is according to the dictates of the insurance law. The insurance law is so clear that if you are not able to meet the minimum capitalization requirement then meaning a certain regulatory actions has to be taken against you,” Deputy Commissioner at the National Insurance Commission, Simon Nerro Davor said. Citi Business News however understands 10 insurance companies and 3 re-insurance companies are yet to meet the recapitalization requirement by the NIC.
StarLife, Unibank launch bancasurrance products Meanwhile StarAssurance has partnered with Unibank for the bank’s latest bancassurance range of products. The products, according to the bank, will offer tailor made insurance and banking services to customers with less hustle.