The National Insurance Commission(NIC) has disputed claims that it has barred or closed two insurance companies in the country.
According to the Chief Executive Officer of the commission, Justice Ofori, the two insurance companies are currently operating, but have been stopped from writing new businesses, as well as advertising.
This follows reports in the media that the commission had barred two insurance companies from operation.
But speaking to Citi Business News, Mr. Ofori mentioned that the two insurance companies are operating and are allowed to renew existing businesses.
“We haven’t barred or closed down any insurance company. Most of the Insurance companies have met the minimum capital requirement. Those who have not been able to meet the minimum capital requirement, we have stopped some of them from writing new businesses or advertising themselves until they get their acts together”
Even though he didn’t give out the names of the company, Mr. Ofori however revealed that the two insurance companies are of local origin.
“Of the over 50 insurance and re-insurance companies in the country the two companies have not met the minimum capital requirement,” he reiterated.
According to him, the NIC is helping the affected companies to assist them meet the minimum capital requirement.
He hinted that a merger of the two entities was an option that was worth considering.
In the event that the companies fail to meet the minimum capital requirement, the commission has promised to take drastic measures.
The commissioner made a call to all the insurance companies in the country to be ready for an audit soon, to ascertain if they are in default of the minimum capital requirement.
Source: Citi Business News