Audio By Carbonatix
The National Insurance Commission (NIC) has disclosed to JOY BUSINESS that two insurance companies are on set to lose their license to operate by the end of this month.
According to the Commission, the two have failed to demonstrate to the regulator they can meet the new minimum capital requirement within the next two weeks.
The regulator is, however, tight-lipped about the names for now.
Last month, NIC revealed to JOY BUSINESS that eight insurance firms out of 51 companies are struggling to meet the new minimum capital of GH¢15 million, a move that could result in these firms losing their right to operate.
But speaking to JOY BUSINESS after a conference of insurance regulators in Africa, Insurance Commissioner, Lydia Bawa revealed that the number has reduced to two.
She added that everything is being done to protect the policyholders of these firms.
"Some of them are in the process; have injected [money] and they have promised that they are bringing more, but there are one or two from what we are seeing will not meet it. For those companies, we would have to revoke their licenses," she said.
"We don't want to go closing companies because they have to go through the process of liquidation, paying off liabilities and things like that so we are managing them," she added.
Madam Bawa said although they regret to see this happening, they have to take the decision nonetheless to protect the interest of policyholders.
She said in cases where insurance companies have demonstrated the will to meet the minimum requirements they are given time and assisted.
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