President of the Chartered Insurance Institute of Ghana (CIIG), has asked local and small insurance firms to begin a formal engagement with the National Insurance Commission (NIC) on ways to meet the new minimum capital requirement.

Speaking to JoyBusiness at an ethics seminar in Accra, Asante Marfo Ahenkorah said the NIC has given some time to the players in the industry to try and make up the capital.

He believes most of the insurance companies will be able to reach the target but added that some of the indigenous companies may find it difficult to reach the target.

Mr Marfo Ahenkorah said, “as a people, we have to engage the commission and the companies have to also engage the public to raise some funds”.

According to him, the NIC is opened to discussions on measures that will prevent the collapse of any insurance firm as a result of the new minimum requirement which must be met by next year or the firm loses its license.

“However, what happens is that once some companies are in session, they need to assist those companies to be able to develop to that level so that they meet those standards,” he said.

Mr Asante Marfo Ahenkorah also mentioned the fact that some Ghanaians also want to keep their companies to themselves.

The National Insurance Commission earlier announced an increase in capital levels for players in the insurance space.

The over 200 per cent increase has been criticized by some players with some describing it as a move to push some local companies out of business.

Although the NIC has given ample time to players to meet the new requirement,

After addressing some sector players at an ethics seminar in Accra, Deputy Commissioner of Insurance, Michael Kofi Andoh reiterated the need for some reforms in the insurance space.