NIC To Announce New Capital Requirement For Insurance Industry Before Year End

The National Insurance Commission (NIC) will before the end of the year 2018 announce a new minimum capital requirement for the insurance industry.

This is according to the Head of Supervision of the NIC, Seth Eshun.

Currently, the minimum capital requirement for insurance companies is 15 million Ghana cedis.

According to the NIC, the delay in announcing a new capital requirement is as a result of recent happenings in the banking sector ahead of the deadline in meeting the 400 million cedis capital requirement.

Speaking to Citi Business News, Mr. Eshun said the new capital requirement for insurance companies is crucial for the industry.

“One of the reasons that we have delayed in announcing a new minimum capital requirement for the insurance industry is to let the banks finish with their recapitalization. By the end of this year, we will come out with what the capital requirement is and then we give the insurance companies some time to recapitalize.”

He added, “We also want to ensure that the insurance industry and the banks are not really competing for the same capital to recapitalize, so that is also part of the reason why it has been delayed”.

Mr. Eshun explained that the NIC was doing all it can to ensure that the insurance industry does not suffer the same fate as the banking industry.

“We all know the state that we are in, within the financial sector. We know of the turmoil that we are in and it is not the best of times. We as an Insurance sector have been doing our best to make sure that our sector is insulated from some of these difficulties as much as possible.”

Mr Eshun made these comments at the sidelines of the re-branding of UT Life Insurance to Milife Insurance.

Rebranding of UT Life Insurance to Milife insurance

UT Life Insurance has re-branded to miLife Insurance, along with its new slogan; Live More.

According to the company, it has a singular focus of positioning the customer at the heart of the business by making purchasing and owning insurance simple, affordable and more accessible, the financial institution’s vision is to “be the leader in helping Ghanaians build their dreams, one customer at a time.”

Chief Executive Officer (CEO) of miLife Insurance, Kwaku Yeboah-Asuamah, stated that the re-branding represents a new identity and a new beginning because as the business environment witnesses significant changes, there is the need to be responsive to the exigencies of the times and not remain static.

“With a forthright commitment to innovation and excellence, we cannot but position ourselves ready to help our customers realize their dreams through simplicity and affordability of service”, he stated.

A statement from Leapfrog Investments, miLife’s lead investor, said that the team “are focused on opening up accessibility to life insurance, by taking the complexity out of purchasing and owning insurance for all Ghanaians, opening the door to a more certain future, and giving customers the confidence to pursue their dreams and live more.”