Debt Exchange: NIC to suspend minimum capital requirements, CAR of insurance firms for 2 years
Dr. Justice OforiAs part of measures to mitigate the impact of the Domestic Debt Exchange Program on insurance companies, the National Insurance Commission will place a moratorium on the Minimum Capital Requirements (MCRs) and Capital Adequacy Ratio (CAR) on the insurers.This means the MCR and CAR will not be enforced but regulated entities will be required to operate in such a way as to be able to pay claims and operate expenses.The current minimum capital requirement of life and non-life Insurance companies is ยข50 million, whilst the CAR is 14.2%.In a letter to the insurance firms on draft regulatory forbearances to mitigate the impact of the Domestic Debt Exchange on insurance and reinsurance firms signed by the Commissioner of Insurance, Dr. Justice Ofori, the NIC said there would be a…