NIC to strengthen supervision of insurance sector, Friday, February 3, 2012, pg 53
THE National Insurance Commission is to introduce a new system of supervising insurance companies as part of its efforts to strengthen the regulation of the insurance industry.
Known as the risk-based supervision system, the arrangement will replace the existing compliance-based system and will make it possible for the regulator to supervise companies based on the level of risk identified in a particular company.
The move, according to the NIC, would also meet the changing needs of the insurance industry in Ghana.
The Commissioner of Insurance and Chief Executive Officer of the National Insurance Commission, Mrs Nyamikeh Kyiamah, who announced this at the 50th anniversary celebration of the SIC Insurance Company Limited in Accra on Wednesday, said in view of the decision to change the supervision system, the commission was working on a new solvency and capital adequacy framework to be implemented in the course of the year.
The new solvency law, when adopted, would deny insurance companies with weak financial standing the opportunity to undertake bigger business transactions.
The new regulation, which is currently at the draft stage when adopted and passed into law, would compel insurers to do business according to their liquidity ratios - the amount of their assets that could easily be used to defray debts where necessary.
In effect, insurance companies throughout the country will not be allowed to write policies for their clients on credit bases as is the case under the existing regulation.
The NIC, the commissioner stated, had also taken steps to enable the industry to adopt International Financial Reporting Standards by the end of the year to improve the quality and consistency of financial reporting and also make relevant information available for effective risk-based supervision.
Furthermore, Mrs Nyamikeh said, the commission was also reviewing the Insurance Act to provide the appropriate legal framework to support the ongoing reforms.
While urging the insurance companies in the country to work hard and take advantage of opportunities in the financial services sector to help build a better industry that satisfies the needs of its policy holders, she also pledged the commission’s commitment to promoting growth and stability in the insurance market and to protect the interest of insurance policy holders.
The commissioner commended the SIC Insurance Company Limited for its successful operations and its achievements over the years.
The company has grown over the last 50 years to become the largest non-life insurance company in Ghana.
From 1955 up to 1962, it was known as the Gold Coast Insurance Company and later became the State Insurance Company.
In 2007, the company’s general business was separated from the life business with the name changed to SIC Insurance Company Limited and SIC Life Assurance Company.
As the largest non-life insurance company in Ghana providing diversified and comprehensive range of insurance products and services, SIC Insurance has and continues to play a positive role in the conduct of insurance business and the growth of the insurance industry.
Trumpeting some of the company’s achievements, Mr Benjamin Kwame Acolatse, the Managing Director of the company, said its investment profile covered 14 companies, 14 of which were listed on the Ghana Stock Exchange.
“SIC has contributed tremendously not only in building the nation, but also in rebuilding the nation when it is struck with various perils, by its claims paying ability to vital national institutions such as Ghana Airways, Ghana COCOBOD and the Ghana Ports and Harbour Authority,” the MD said.
He said the company had provided employment to over 15,000 staff and agents in addition to countless individuals.
The Board Chairman of SIC, Mr Max Cobbina, said as part of its expansion drive to the international market, the company was extending its tentacles to Liberia and Sierra Leone.
General J.H Smith, the Minister of Defence and guest of honour for the occasion paid tribute to the pioneers of the company whose effort, he stated set the foundation for the establishment of the biggest insurance company in the country.
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| The Insurance Commissioner |
Known as the risk-based supervision system, the arrangement will replace the existing compliance-based system and will make it possible for the regulator to supervise companies based on the level of risk identified in a particular company.
The move, according to the NIC, would also meet the changing needs of the insurance industry in Ghana.
The Commissioner of Insurance and Chief Executive Officer of the National Insurance Commission, Mrs Nyamikeh Kyiamah, who announced this at the 50th anniversary celebration of the SIC Insurance Company Limited in Accra on Wednesday, said in view of the decision to change the supervision system, the commission was working on a new solvency and capital adequacy framework to be implemented in the course of the year.
The new solvency law, when adopted, would deny insurance companies with weak financial standing the opportunity to undertake bigger business transactions.
The new regulation, which is currently at the draft stage when adopted and passed into law, would compel insurers to do business according to their liquidity ratios - the amount of their assets that could easily be used to defray debts where necessary.
In effect, insurance companies throughout the country will not be allowed to write policies for their clients on credit bases as is the case under the existing regulation.
The NIC, the commissioner stated, had also taken steps to enable the industry to adopt International Financial Reporting Standards by the end of the year to improve the quality and consistency of financial reporting and also make relevant information available for effective risk-based supervision.
Furthermore, Mrs Nyamikeh said, the commission was also reviewing the Insurance Act to provide the appropriate legal framework to support the ongoing reforms.
While urging the insurance companies in the country to work hard and take advantage of opportunities in the financial services sector to help build a better industry that satisfies the needs of its policy holders, she also pledged the commission’s commitment to promoting growth and stability in the insurance market and to protect the interest of insurance policy holders.
The commissioner commended the SIC Insurance Company Limited for its successful operations and its achievements over the years.
The company has grown over the last 50 years to become the largest non-life insurance company in Ghana.
From 1955 up to 1962, it was known as the Gold Coast Insurance Company and later became the State Insurance Company.
In 2007, the company’s general business was separated from the life business with the name changed to SIC Insurance Company Limited and SIC Life Assurance Company.
As the largest non-life insurance company in Ghana providing diversified and comprehensive range of insurance products and services, SIC Insurance has and continues to play a positive role in the conduct of insurance business and the growth of the insurance industry.
Trumpeting some of the company’s achievements, Mr Benjamin Kwame Acolatse, the Managing Director of the company, said its investment profile covered 14 companies, 14 of which were listed on the Ghana Stock Exchange.
“SIC has contributed tremendously not only in building the nation, but also in rebuilding the nation when it is struck with various perils, by its claims paying ability to vital national institutions such as Ghana Airways, Ghana COCOBOD and the Ghana Ports and Harbour Authority,” the MD said.
He said the company had provided employment to over 15,000 staff and agents in addition to countless individuals.
The Board Chairman of SIC, Mr Max Cobbina, said as part of its expansion drive to the international market, the company was extending its tentacles to Liberia and Sierra Leone.
General J.H Smith, the Minister of Defence and guest of honour for the occasion paid tribute to the pioneers of the company whose effort, he stated set the foundation for the establishment of the biggest insurance company in the country.
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