Advertisement
Desktop970x250
Advertisement
Desktop970x250

Insurance industry in Ghana is small but has potential for growth – Dep Commissioner of Insurance

By Laud Nartey
SHARE
2 min read
Insurance industry in Ghana is small but has potential for growth – Dep Commissioner of Insurance

The Deputy Commissioner of Insurance at the National Insurance Commission (NIC), Michael Andoh, has said the insurance is currently small however the sector has potential for growth.

He explained that adequate capitalisation would create the needed capacity for sustainable and profitable growth in the sector.

“Appropriate interventions are then made to mitigate such risks. Such interventions can include; enhancement of capital, improving risk management or other appropriate measures.

“This model deepens transparency, improves regulatory bites and ensures that regulated entities are able to put in place remedial measures quickly before the risk deteriorates,” he said on the second day of the 2022 investor webinar series by the Black Star Group (BSG) that focused on the insurance sector.

Mr Andohm further indicated that the NIC is currently embarking plans to enhance its solvency and capital adequacy framework.

“The technical specifications for the new risk-based capital framework, have therefore been issued to the insurance industry. The model is anchored on three pillars, quantitative requirements, supervisory reviews and reporting, disclosure and then market discipline,” he said.

“What we have witnessed generally is a shift towards creating regulation regimes that are characterised by higher standard for risk capital and solvency – the reason is that an insurer’s capital to unforeseen shocks or losses is determined by the capital of the insurer. Capital requirements are therefore prerequisite for growth and resilience of insurers and banks.”

“The NIC has been working on a regulatory framework that ensures capital sustainability, market resilience, growth and transformation of the insurance sector,” he said.

“Currently, the insurance industry is small but has potential for growth. Adequate capitalisation would create the needed capacity for sustainable and profitable growth.”

“The recent challenge has been low market retention. It is expected that capitalisation improves the retention capacity,” he added.

By Laud Nartey|editors.3news.com|Ghana

Sign up to The Daily Briefing

Stay informed with the most relevant stories shaping Ghana and the world, every morning and evening.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy.

Share This Article

Laud Nartey is an online editor with current affair team at Media General, operators of TV3 Ghana, 3News.com and more. Email: Laud.Nartey@editors.3news.com

Advertisement
Desktop300x250

Up Next

Advertisement
Desktop970x250