• About
  • Advertise
  • Privacy Policy
  • Contact
Saturday, July 12, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

NIC’s Decision to Collapse Insurance Companies Useless, Unnecessary and Retrogressive- Expert

January 13, 2022
Stephen M.Cby Stephen M.C
in Insurance
0
NIC’s Decision to Collapse Insurance Companies Useless, Unnecessary and Retrogressive- Expert

Edgar Wiredu, Insurance Expert

Edgar Wiredu, an Insurance Marketer and Expert, has berated the National Insurance Commission (NIC) over its decision to collapse the insurance firms that failed to meet the new minimum capital requirement. He thus, described the move as “useless, unnecessary and retrogressive”.

Speaking on NIC’s directive to the insurance companies, Edgar Wiredu questioned the legality of the regulator’s decision, describing the directive as completely unnecessary and will lead to avoidable job losses. He accused the authorities of altering the laws from their offices.

“What the law requires of the regulator to do is not what the regulator has done. What it has done is an arbitrary decision and it was based on the fact that Bank of Ghana (BoG) raised the minimum capital requirement. Raising the minimum capital is based on a certain formula and you haven’t done that but you are changing the laws from your offices.”

Edgar Wiredu

The Insurance Marketer suggested that the payment of minimum capital is pointless because the insurance companies will not use it for anything.

RelatedPosts

Governing Board of National Insurance Commission Inaugurated to Boost Sector Reforms

Old Mutual and GUBA Partner to Secure Diasporans with Tailored Insurance Solutions

NIC Partners Ghana Insurance College to Launch Tech-Driven Training Centre

“Minimum capital is supposed to be liquid money. That money cannot be used for anything. It can only be touched with the approval of the regulator when there is an emergency. Brokers don’t underwrite any insurance, so why should they provide minimum capital? …this decision by the NIC is totally useless and unnecessary. We have to be progressive and not come out with directives that are retrogressive.”

Edgar Wiredu

The NIC is on the verge of withdrawing the licences of some insurance companies after they were unable to recapitalise to GH¢50 million by the end of the recapitalisation deadline.

By not meeting the new capital requirement, the insurance sector regulator said the companies have also failed to move their capital adequacy ratio (MCR) to 150%, as required by an earlier directive.

NIC has, therefore, given the affected companies up to 6th February, 2022, to cough up the funds or close shop and hand over their operations.

NIC 1
NIC Commissioner, Mr. Justice Yaw Ofori

In the notice issued to the affected companies, the industry regulator indicated that the companies that were unable to raise the capital have breached Section 59 of the Insurance Act 2021 (Act 1061).

“Pursuant to Section 178 of the Insurance Act, the Commission, by this letter, issues a one-month notice of enforcement to [name withheld] effective January 12, 2022. For the purposes of protecting your policymakers, the entire insurance industry and the general public. You will be placed under enforcement with effect from February 10, 2022.”

NIC

NIC also warned affected companies not to enter into new contracts with any class of business, renew any existing contracts, vary contracts or engage in any marketing activities. It also ordered the firms to stop their staff and agents from selling their products.

The warning that was communicated to the affected companies now risk triggering the collapse of companies, mass layoffs, loss of investments and disruptions in a financial sector that is recovering from the recent clean-up exercise.

The directive to insurance companies to recapitalise from GH¢15 million to GH¢50 million was issued in 2019 and meant to elapse in June 2021. It was, however, shifted to the end of January 2022, as a result of the impact of the COVID-19 pandemic on businesses.

READ ALSO: Ghana’s Debt Moves Deeper Into Distress, Bloomberg Index Shows

Tags: Edgar WireduMinimum Capital requirementNational Insurance Commission
Please login to join discussion
Previous Post

Virologist Calls For Messaging Campaign On COVID-19 Vaccination

Next Post

Who Leaked The Audio? MzGee and Husband Versus Gideon Boako

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Ewurabena Aubynn
General News

NDC’s Ewurabena Aubynn Secures Historic Victory in Ablekuma North Rerun

July 11, 2025
Minority Decries Violence, Police Inaction in Ablekuma North Rerun, Polling, Violence
General News

Minority Decries Violence, Police Inaction in Ablekuma North Rerun

July 11, 2025
BoG’s Ban on 10 Money Transfer Organisations Sparks Transparency Debate
Banking

BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences

July 11, 2025
AU Urges Human Dignity In Corruption Fight
Africa

AU Urges Human Dignity In Corruption Fight

July 11, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Nearly 800 Killed While Trying To Receive Food Aid In Gaza

July 11, 2025
Shamima Muslim,
General News

Government Condemns Journalist Assaults During Ablekuma North Rerun

July 11, 2025
Ewurabena Aubynn
General News

NDC’s Ewurabena Aubynn Secures Historic Victory in Ablekuma North Rerun

by Evans Junior OwuJuly 11, 2025
Minority Decries Violence, Police Inaction in Ablekuma North Rerun, Polling, Violence
General News

Minority Decries Violence, Police Inaction in Ablekuma North Rerun

by Silas Kafui AssemJuly 11, 2025
BoG’s Ban on 10 Money Transfer Organisations Sparks Transparency Debate
Banking

BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences

by Stephen M.CJuly 11, 2025
AU Urges Human Dignity In Corruption Fight
Africa

AU Urges Human Dignity In Corruption Fight

by Lawrence AnkutseJuly 11, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Nearly 800 Killed While Trying To Receive Food Aid In Gaza

by Comfort AmpomaaJuly 11, 2025
Shamima Muslim,
General News

Government Condemns Journalist Assaults During Ablekuma North Rerun

by Silas Kafui AssemJuly 11, 2025
Ewurabena Aubynn
Minority Decries Violence, Police Inaction in Ablekuma North Rerun, Polling, Violence
BoG’s Ban on 10 Money Transfer Organisations Sparks Transparency Debate
AU Urges Human Dignity In Corruption Fight
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Shamima Muslim,
[/vc_row_inner]

Recent News

  • NDC’s Ewurabena Aubynn Secures Historic Victory in Ablekuma North Rerun
  • Minority Decries Violence, Police Inaction in Ablekuma North Rerun
  • BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences
  • AU Urges Human Dignity In Corruption Fight
  • Nearly 800 Killed While Trying To Receive Food Aid In Gaza
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.