Chief Executive Officer of Donewell Insurance, has expressed his outfit’s readiness to meet any increase in the minimum capital requirement for insurance companies.
Seth Aklasi said, “Donewell Insurance is fully capitalized and has exceeded the minimum capital requirement of GH¢15 million by the regulator.”
Nevertheless, we are focused on strengthening our financial base to meet any increase in the minimum capital that would be required by the NIC,” Mr Aklasi added.
He made this known at the company’s 25th Anniversary Press Launch in Accra.
Proposed Capital Increment
Last year the National Insurance Commission (NIC) met with the Finance Ministry in a move to increase the minimum capital requirement for insurance companies which currently stands at GH¢15 million. At this meeting, the Commissioner of Insurance, Justice Yaw Ofori proposed GH¢50 million as possible new level.
The proposed increments according to the regulator have been influenced by current developments in the economy and it is also to help insurance companies to absorb industry risk.
According to Donewell CEO, the Anniversary seeks to express the company’s commitment to ensuring that an appreciable number of the Ghanaian populace are covered and are guaranteed prompt payment of claims and excellent customer and client servicing.
“In 2017, the company paid claims in excess of GH¢24 million out of the premium income of GH¢36 million demonstrating our preparedness to meet our clients at their point of need,” he said.
Fake Insurance Stickers
One of the issues insurers still grapple with according to Mr Aklasi, is the influx of fake stickers on the Ghanaian market.
Speaking to JoyBusiness, he said, “We have discussed several ideas as to whether we should have barcodes that are going to be scanned with hand-held devices or we are creating a database; the database actually tells the regulator every policy that is sold, so that is the regulator’s view; the regulator is working on that.”
Mr Aklasi said, “Clearly we are saying that there is leakage in our pool, it is the health of the pool that basically grows the industry so once we are getting all our money into the pools that have been created then we are basically growing and we can meet our customers’ expectations better.”
He has, therefore, urged Ghanaians to be wary of this unlawful activity. He has also appealed to the regulator to use appropriate channels to fight the scourge and sanitize the insurance industry.
The theme for the Anniversary is, “25 years of Donewell: Enhancing Trust and Confidence.”