Ms Lydia Lariba Bawa, Commissioner of Insurance, says the nation’s Insurance Commission (NIC), together with its Risk Based Supervisory framework, issued a danger based solvency and capital adequacy framework to further improve a capitalization.
She said the framework which has been issued in December 2014 required insurance vendors to satisfy new minimum capital requirements, new Capital Adequacy Ratios and in many cases makes use of the prescribed methodologies to calculate their Technical Provisions.
Ms Bawa, speaking on the launch of RegencyNem Insurance Ghana Limited, said even though a portion companies have fully met certain requirements, only Regency Nem did that so through a merger.
She said aside from the capitalization, the NIC in addition required insurance agencies to try effective corporate governance and risk management means to improve efficiency and profitability.
The Commissioner said the organization governance and also the risk management framework required insurance carriers to determine control functions for instance internal audit, risk management and compliance to further improve risk mitigation.
Ms Bawa said the Ghanaian insurance industry as at December 2015 recorded a gross premium of GH1.5 billion and total assets that has reached over GH3 billion.
She said evidently this represents a tremendous growth over previous years’ figures; is still insignificant regarding contribution to Ghana’s Gdp.
The Commissioner said time frame insurance penetration may just be related to problems that inhabit operational efficiency, profitability and financial soundness of the profession, adding that “chief among such challenges is the variety of smaller companies”.
Mr Edward Pianim, Board Chairman of RegencyNem Insurance, said Regency Alliance Insurance Limited and NEM Insurance Ghana, being the first local insurance agencies to merge in Ghana, marked the starting of a brand new strategic relationship which are of advantages to the stakeholders.
He said both firms are subsidiaries of international insurance vendors and entered the market industry in 2009 and 2008, respectively to help with the advisory service in insurance together with other insurance activities.
Mr Pianim said these objectives were largely achieved because they have both operated during the entire following years with efficiency and profitability.
The Board Chairman said once they were operating about the Ghanaian market the minimum capital requirement was One million dollars.
However, with the introduction of risk based supervision by NIC is actually new minimum capital of GH15 million, there was a necessity to alter their direction so that you can pursue their intention this will position in the Ghanaian market.
Mr Bode Oseni, Managing Director for RegencyNem Insurance Ghana Limited, in his welcome address, said the combination of resources have strengthened them, and were beginning to generate new standards for excellence in the field, adding that “we are usually more previously invested in provide superior service experience to please its numerous clients”.
The Managing Director component management expressed gratitude to NIC because of its encouragement and provisions of enabling environment with the merger to happen, and also assured all stakeholders of their persistence to generate a strong insurance firm.