New minimum, capital requirements (MCR) for insurance entities in Ghana

The National Insurance Commission has indicated that with effect from June 30,2021, the Minimum Capital Requirements (MCR) for the various regulated entities that operate in the insurance sector will take effect.

Below is the Previous and new Minimum Capital Requirements for different regulated entities

To ensure that the recapitalization exercise achieves its' intended objectives of improving the financial capacity and liquidity of the Insurance industry, companies will be required to meet the new requirements through:

    1. Fresh capital (cash) injection; or
    2. Capitalization of audited profits (retained earnings); or
    3. A combination of the above options.

Injection of property or revaluation surpluses will not be accepted. Any unencumbered property that is introduced will have to be sold for cash and the proceeds capitalized by at least six months before the capitalization date, that is, by December 31, 2020.

The key implementation points on the new MCR are as follows

    1. The MCR will be immediately applicable to all new applicants and pending applications.
   2.  Existing firms will have until June 30, 2021 to comply with new MCR.
    3. The Commission would accelerate the implementation of its Risk Based Solvency Capital framework to ensure that in addition to the MCR, the capital of a firm is commensurate with the risks it bears.


The mandate of the Commission is to protect the interest of policyholders by ensuring a financially strong Insurance industry. The new MCR is one of the initiatives the Commission is taking to achieve this.

The Commission strongly urges Shareholders, Directors and Executives to take all proactive steps to meet the new capital requirements by the set date.

The Commission will work with all industry players and provide the needed assistance to help the industry meet the new MCR. This will help Ghana enjoy the benefits of a well-developed Insurance market which includes improvement in the well-being and welfare of Ghanaians and the economy as a whole.

By: National Insurance Commission