18 September 2017

Ghana: Insurance Board Pushes for Double-Digit Penetration

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The Board of Directors of the National Insurance Commission (NIC) has given a strong indication that it will work assiduously to push insurance penetration from the current single-digit to a double-digit figure as part of its four-year mandate.

The chairman of the Board, Ray Ankrah gave this promise when the Board paid a working visit to a Deputy Minister of Finance in his office in Accra.

Mr. Ankrah said the current Board was aware of the Ministry's position on reviving the sector to meet the current demands in the insurance sector in the country.

"We are willing to work for the sector to meet the economic development agenda of the governing New Patriotic Party (NPP) administration led by the President, Nana Addo Dankwa Akufo-Addo as part of the board's four-year mandate.

According to him, the current two per cent penetration in the sector is nothing to write home about and members are willing to roll up their sleeves to work and make insurance a household product in the country.

He gave the assurance that members are willing to work to reposition the insurance industry in the country as has been in the developed parts of the world.

He says they are mindful of the government's decision to make the insurance industry part of the financial sector of the economy by rolling out products that will encourage sector players to be innovative in their product generations.

"We are aware claims payment in the country has slowed over the years and the new Board is working hard to ensure claims are thoroughly investigated and paid on time in accordance with the rules of insurance engagements in the country," he averred.

He further assured that his team will make a case for deposing off claims to help raise awareness to increase penetration in the country.

The Commissioner-General of NIC, Justice Yaw Ofori remarked that it's about time Ghanaians see the insurance as a key player in the financial sector of the economy.

He admitted that the commission needs the government's support to strengthen the insurance bond markets as no insurance company in the country has the capacity to operate in the oil and gas sector of the economy.

According to him, capitals in the oil and gas sector of the economy continue to be flown out of the country annually at the detriment of the state because of the lack of capacity in the sector.

Insurance companies need more money to be able to absorbed risk in the booming oil and gas sector of the economy, he reiterated.

He further appealed to the government to pass the insurance Bill into an Act to further regulate the sector in accordance with the GHC250 million recapitalization regime.

A Deputy Minister for Finance, Charles Boahen, said the insurance sector of the economy needs radical changes, policy and innovations in the country.

There is the need for the insurance companies to come up with strategies for financial intermediation, he urged.

He said the current level of two per cent is under penetration and there is the need for more products to be rolled out to increase penetration in the sector.

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