The National Insurance Commission (NIC) was established under Insurance Law 1989 (PNDC Law 227) , but now operates under Insurance Act, 2006 (Act 724). The object of the Commission, as detailed in Act 724 is to ensure effective administration, supervision, regulation and control the business of Insurance in Ghana. NIC is mandated to perform a wide spectrum of functions including licensing of entities, setting of standards and facilitating the setting of codes for practitioners. The Commission is also mandated to approve rates of insurance premiums and commissions, provide a bureau for the resolution of complaints and arbitrate insurance claims when disputes arise.
The responsibilities of the Commission include the provision of recommendation to the sector Minister for policy formulation, supervision of practitioners, enforcement of compliance and public education. The development of strong relationships with regulators from other countries and international bodies such as the IAIS and ensuring the conformity of practitioners to internationally accepted standards are also key mandates of the Commission.
The enactment of Act 724 was a major milestone towards a robust insurance regulatory environment as it empowers and grants adequate powers to the Commission. Together with several other initiatives in the past decade, the new Law provides a strong regulatory framework for Ghana’s insurance industry.
The functions of the NIC include:
- License insurers and insurance intermediaries who transact insurance business in Ghana
- In consultation with relevant bodies approve and set standards for the conduct of insurance business and insurance intermediary business
- Encourage the development of and compliance with the insurance industry’s codes of conduct;
- Approve, where appropriate, the rate of insurance premiums and commissions in respect of any class of insurance
- Provide a bureau to which complaints may be submitted by members of the public for resolution
- Arbitrate insurance claims referred to the Commission by any party to an insurance contract
- Recommend to the Minister proposals for the formulation of policies for the promotion of a sound and efficient insurance market in the country
- Supervise and approve transactions between insurers and their reinsurers
- Undertake sustained and methodical public education on insurance
- Take action against any person carrying on insurance business or the business of insurance intermediaries without a licence
- Maintain contact and develop relations with foreign insurance regulators and international associations of insurance supervisors and maintain a general review of internationally accepted ,standards for the supervision of insurers and insurance intermediaries
- Supervise, regulate and control compliance with the provisions of this Act and Regulations made under it and any other enactment relating to insurance and
- Perform other functions that are incidental to the carrying out of its functions under this Act