Insurance Commission sets December 2012 deadline for new capital requirement

Insurance companies should by December 2012 have a minimum stated capital of 5 million dollars from their current level of one million dollars.

According to the regulator, this would help position insurance firms to underwrite much bigger risks.

The Insurance Commissioner, Nyamikeh Kyiamah tells Joy Business her outfit is currently engaging operators to ensure they meet the deadline.

But with the country set to begin drilling oil in commercial quantities and other developments in the economy, questions are being asked whether the 5 million dollars capital requirement is enough.

Responding to the questions, Mrs Kyiamah said the $5 million is simply “the basic minimum.”

“If there is the need for increase in capital for any company it will depend upon the portfolio of the company. In this one we are looking at what we call risk based capital – this depends on the amount of risk that you have on your books,” she added.

Source: Joy Business/ Ghana