In February 2021 the Ghanaian president signed the Insurance Bill 2020 into law, replacing the Insurance Act of 2006. The new law includes the addition of three compulsory insurance covers: public liability, group life insurance for employees, and professional indemnity. These are in addition to the three current mandatory insurance covers: motor third party liability, fire insurance for private commercial properties, and workmen’s compensation.
Given its focus on stringent regulatory framework and good corporate governance standard and best practices, successful implementation and enforcement of the new law could have a positive impact on GCR’s sector risk assessment. GCR positively views the complementary nature of the increase in minimum capital requirements announced in 2019 together with a developing risk-based capital management framework to the objectives of the new law through generation of expanded underwriting capacity to accommodate premium growth expected from new compulsory lines.