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Ghana News

Insurance Companies in Ghana Remain Resilient Despite Delayed IMF Deal

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The insurance industry in Ghana has remained strong and resilient despite the economic crisis caused by delayed IMF deals and deep fiscal imbalances. According to the Economist Intelligence Unit (EIU), the approval of Ghana’s IMF deal is forecast to be approved by mid-2023. However, this approval is subject to the country agreeing on debt restructuring with its external creditors.

The insurance industry has continued to provide protection to society’s assets, liabilities, lives, and businesses. Even in the midst of an economic crisis, insurance companies have continued to discharge their obligations to the public and businesses.

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The regulator, the National Insurance Commission (NIC), has introduced regulatory forbearances to enhance claims settlement. The NIC has placed a moratorium on Minimum Capital Requirements and Capital Adequacy Ratios for industry players. This means that more physical assets can now be included in accounting for the capital adequacy of insurers, releasing more cash for claims settlement and other operational activities.

The claims settlement timeline has been extended to give insurers more time to settle legitimate claims. The maximum period within which all processes leading to the payment of claims should be completed has been increased from four weeks to eight weeks. The NIC has also granted a reduction in product approval fees for products that are re-packaged and re-priced as a result of the Domestic Debt Exchange Programme.

For the most part, the insurance industry in Ghana has held its ground in the face of economic challenges. Insurance companies have braved the storm, and the regulator has played its part in introducing regulatory forbearances to support the industry. The relaxation of minimum capital requirements and capital adequacy ratios, as well as the extension of claims settlement timelines, will enable insurers to settle legitimate claims and operate more efficiently.

In summary, the Ghanaian insurance industry remains strong and resilient despite the ongoing economic crisis. With the support of the regulator, insurance companies can continue to provide protection to society’s assets, liabilities, lives, and businesses.

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