After Industrial and General Insurance (IGI), which took control of Network Assurance Ghana) in December 2007, Equity Assurance is the second Nigerian group to get established on the Ghanaian market. Having obtained license in February 2008, Equity has just started its underwriting operations.
According to the new company's manager, the insurance companies' minimum capital, currently set at 1 million USD, is poised to be revised upwards to better cope with the rapid growth-related risks of the Ghanaian economy.
Nevertheless, experts are not sure that capital increase is the only solution to the sector's numerous constraints. Indeed, the sector is faced with an economic situation characterized by a faulty management system, a lack of competencies and inadequate service quality well below international standards.
The recent find of oil field in the country is likely to create an enabling environment for the insurance sector as it should lead to its recapitalisation.
