Insurance supervisory authorities are inciting insurance companies to comply with the requirements pertaining to future minimum capital and to solvency.
Non-enforcement of these regulations may carry sanctions and liquidation for defaulting companies. As of next January, the placement of reinsurance business abroad will be authorized only after local capacities have been exhausted. This constraint is likely to allow retention of high amounts of premiums nationwide.
To attain that objective, the regulators have raised minimum capital once more to 15 million GHS (4.7 million USD) for all insurance and reinsurance companies of the country. This measure is due to come into effect as of January 1, 2016.
A capital adequacy ratio has also been adjusted: It will be set at 130% by next December, then 140% by June 30, 2016 and at 150% by December 31, 2016.