Insurance Act, 2006 (Act 724) was passed by Parliament on December 29, 2006 to replace Insurance Law, 1989 (PNDC Law 227).

The major objective of the review was to bring the insurance regulatory powers, practices and procedures in line with international standards.

The changes are expected to improve the financial strength and quality of service delivery of the insurance organizations and thereby give better protection to the policyholder.

The Act among other things prohibits the National Insurance Commission (NIC) from issuing composite insurance licenses. Existing composite companies were therefore required to separate their Life and Non-Life businesses by the end of December 2007.

Insurance, Reinsurance and Broking companies were also required to comply with new minimum capital and other requirements in order to be licensed to operate in Ghana.

A transparent and consultative approach was adopted to ensure that all the major stakeholders provided the necessary inputs to ensure a smooth implementation. The requirements, procedures and deadlines were discussed with the Ghana Insurers Association (GIA) and the Ghana Insurance Brokers Association (GIBA).

Approved Applications.

As at today February 28, 2008, the NIC has approved the following application;

Seventeen (17) Non-Life insurance companies,

Fifteen (15) Life insurance companies,

Two (2) Reinsurance companies,

Thirty- five (35) insurance broking companies

One (1) Reinsurance Broking company and

One (1) Loss adjusting company