[ad_1]
The keynote address will be delivered by Vanguard Assurance's former General Manager, Emmanuel Mahama Baba.
<! –
->
It is undeniable that the recent banking crisis in Ghana has really shaken the very foundations of our financial services sector. Indeed, the survival of our aboriginal banks, in particular, is under shock from the threat of panic withdrawals, among others. The Bank of Ghana (BoG) cites corporate governance and poor management practices as a failure. In simple terms, unrepentant leadership has failed!
As a result, the Bank of Ghana has taken steps to clean up the banking area, including prosecuting bankruptcy administrators. Likewise, and this sounds like our Ghanaian adage to keep a bowl of water nearby when a neighbor's beard is on fire, other key regulators like the National Commission of the Insurance (NIC), the National Pension Regulatory Authority (NPRA) and the National Health Insurance Authority (NHIA), have all taken proactive steps to deepen their regulatory regimes respective, with the aim of avoiding a possible propagation effect in their respective spaces.
It is interesting to note that the NIC has for some time been focusing on risk-based supervision, which aims to improve the sustainability and responsiveness of industry players. For an industry with a penetration rate of less than 2%, based on its contribution to GDP, simply redefining a supervisory regime would appear to be inadequate, as the ability of actors to secure large transactions has often been questioned.
To this end, the NIC has recently stressed the need to increase the minimum capital from its current level. GHC15m to something in the region of GHC 50m. Indeed, this topic seems to dominate the landscape of our industry lately and the discussion is still ongoing. Instructively, all actors and key actors seem to accept the need for an increment, but with suggestions on the amount and implementation pattern. Indeed, at the recent annual conference of the Ghana Insurance Brokers Association (GIBA) in Kumasi, the subject of Minimum Capital Requirement (MCR) was at the heart of their discussions, with diverse and interesting opinions.
As a stakeholder in this endeavor, the Chartered Insurance Institute of Ghana (CIIG) is committed to bringing a different perspective to this story by engaging in a constructive debate with the aim of creating and deepening consensus on the subject. To this end, the first public conference of the CIIG in 2019 focuses on: "The relevance of Minimum Capital Requirement (MCR) increases with effective risk-based supervision and corporate governance".
The keynote speech will be delivered by an insurance expert and a former Executive Director of Vanguard Insurance, Mr. Emmanuel Mahama Baba.
Representatives from NIC, the Ghana Insurance Association (GIA), GIBA, the Ministry of Finance and a reinsurance authority would participate in the discussions.
Given that we are in the minimum capital requirements (MCR) and capital requirements (RAC), the conference will attempt to address some of the following issues: questions:
- If your RMC is below the required minimum and your RAC is above the required 150%, what are the implications for an industry that needs to be on a plan?
- Will an increase in RCM necessarily increase CAR?
- With effective risk-based supervision, do we need periodic increases in the capitalization rate?
- What will an increase in the solvency ratio mean for companies and professionals in the insurance sector? Is it just a big article that does not have any impact on these professionals?
These, among others, will be addressed in this public lecture Wednesday, April 10 at the auditorium of the National Insurance Commission at 9am.
Insurance practitioners, accountants, shareholders and all other stakeholders, including students in insurance and accounting and finance, are therefore encouraged to participate.
Where are we going from here?
[ad_2]
Source link
