Wholesale minimum capital requirement for insurance companies must be reviewed – CEO, miLife Insurance

The Chief Executive Officer (CEO) of miLife Insurance, Kwaku Yeboah-Asuamah, has called for a tier system in the Minimum Capital Requirement (MCR) for players in the insurance industry.

He said those engaged in big time insurance business should be made to have huge capital than those doing micro insurance.

There are moves by   the National Insurance Commission (NIC), the regulator of insurance in the country, to increase the MCR to reflect the changing insurance business environment and also to help insurance companies underwrite big ticket projects.

The current MCR for insurance companies is GHc15 million and there are speculations that the NIC would increase it to GHc50 million.

Speaking in an interview with the media on the sidelines of the rebranding of UT Life Insurance to miLife Insurance in Accra on Tuesday, Mr Yeboah-Asuamah said players in the insurance industry supported the move by the NIC to increase the MCR for insurance companies.

However, he said a wholesale MCR for the insurance companies would not augur well for the industry, indicating that it would not be prudent for the NIC to announce a general MCR for the insurance companies.

Mr Yeboah-Asuamah suggested that the MCR for micro insurance companies should be different for those engaged in big time insurance business.

According to him, companies engaged in micro insurance would not require more capital like their counterparts engaged in life or motor insurance.

Quizzed whether the miLife has enough capital to meet the proposed GH50 million MCR, Mr Yeboah-Asuamah said his outfit currently has four times the current MCR.

He said miLife currently has stated capital of GHC56.0 million, making it one of the most capitalized life insurance companies in Ghana.

“In the event that the MCR for the insurance companies is increased to GHc50 million, miLife has financiers who are ready to capitalize the company,” he said.

The CEO said Leapfrog Investments in 2015 acquired a majority stake in miLife insurance formerly trading as UT Life Insurance.

MiLife Insurance, Mr Yeboah-Asuamah said was poised to deliver exceptional service to customers and deepen insurance penetration in the country.

He said the rebranding of UT Life Insurance to miLife Insurance was to improve on the processes systems to deliver better service to customers of the company.

By Kingsley Asare

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