Here’s what the next NDC govt plans to offer the insurance and pensions sector

The opposition National Democratic Congress (NDC) has pledged to adopt a Risk-Based Minimum Capital approach for the insurance sector should they be given the nod in the upcoming December polls.

According to the party’s 2020 manifesto, the minimum capital will be linked to the risks an insurance company carries instead of the current fixed minimum capital regime.



Read full article/> Ghana’s insurance sector which currently has a penetration rate of 2 percent coupled with the coronavirus pandemic could adversely affect the insurance sector in general.

The National Insurance Commission (NIC) on its part in 2019 increased the minimum capital for insurance companies from GH¢15 million to GH¢50 million.

The Commission further did the same for Reinsurance companies from GH¢40 million to GH¢125 million.

While the minimum capital requirement for Insurance Broking companies was also increased from GH¢300,000 to GH¢500,000, the minimum capital requirement for reinsurance broking companies was however maintained at GH¢1 million.

Insurance firms in the country are all required to meet a June 2021 deadline or face collapse.

Pensions

For Pensioners, the opposition NDC has also pledged to pay an annual 13th-month bonus in consonance with the amendment of the National Pensions Act 2008 ACT 76 if elected.

According to the party, the amendment will also afford workers in the SSNIT pension scheme who have contributed for a minimum period of 10 to 15 years an opportunity to use their contribution as collateral loans for housing.

“We will amend the National Pensions Act 2008 ACT 766 to improve both service delivery and financial efficiency in the SSNIT pension scheme.

“It will allow contributing workers such as private teachers amongst others who lose their jobs suddenly due to natural occurrences such as COVID-19 pandemic to be paid stipends while they search for a new job.

"Allow workers who have contributed for a minimum period of 10 to 15 years to use their contribution as collateral to access mortgage loans for housing. We will pay pensioners an annual 13th-month bonus,” the Flagbearer of the NDC, John Mahama explained.