Dr. Mahamudu Bawumia, the Vice President of Ghana, has stated that the Nana Addo-led Government will digitize the provision of insurance services in Ghana. He thus, urged stakeholders in the industry to work together to engender trust in the industry.
The Vice President noted that it is the government’s vision to improve micro and agricultural insurance products in the country and to expand access and strengthen the balance sheet of the insurance industry.
Dr. Bawumia made this known at the Annual General Meeting and Education Meeting of the West African Insurance Companies Association (WAICA) in Accra. The two-day conference which started yesterday, was on the theme: “The New Normal, Fact or Fiction– How Realistic in Practice and Spread of Insurance in West Africa?” It attracted insurance companies and stakeholders on the continent to discuss and strategize on ways of expanding services amid the COVID-19 pandemic.
The Vice President called on industry players to support the government’s agenda towards ensuring a financially inclusive society. He opined that the country is on a recovery path from the ravages of the COVID-19 “as statistics showed a growth rate of 5.4 percent last year, 2021”. Such performance, Dr. Bawumia said, reflects on average, all key drivers of the economy.
“The insurance industry is a critical area of focus in driving the country’s development efforts. The government would ensure it feeds into the capital market to translate into broader economic growth.”
Dr. Mahamudu Bawumia
Dr. Bawumia Commends the Association
Dr. Bawumia commended the Association’s strategies for improving insurance coverage and penetration in West Africa.
The Vice President disclosed that the government has put in place measures such as the passage of a new Insurance Act. The Act, he said, has provided stringent regulatory framework to protect consumers and increase the accessibility of insurance to the Ghanaian populace, particularly to the informal sector, operators, and consumers in the low-income bracket.
“It also provides measures aimed at strengthening the corporate governance practices within the industry and in accordance with international best principles of the risk-based supervisory framework. The new Insurance Act had also strengthened the regulatory powers of the NIC and provided the regulation of marine insurance, agricultural insurance, micro-insurance, and innovative insurance.”
Dr. Mahamudu Bawumia
Dr. Bawumia, moreover, added that Government embarked on a recapitalization of the insurance industry to help strengthen the balance sheet of regulated insurance entities. He averred that the recapitalization is aimed at enhancing the underwriting capacity of insurance to enable them to assume higher insurance risk.
“It would ensure resource availability for investment in essential productive areas such as technology, product development, and distribution of appropriate insurance packages.”
Dr. Mahamudu Bawumia
Dr. Justice Yaw Ofori, the Commissioner of the NIC, also added his voice, noting that the ongoing recapitalization remains one of the NIC’s crucial projects. To him, it is because the NIC believes that its implementation would set the platform for much growth and profitability within the industry.
Dr. Ofori asserted that the Commission is working keenly with its partners and stakeholders to enforce the implementation of the various compulsory insurances identified by the Commission.
The Commissioner urged fellow insurers to transform their businesses and operating modules to re-emerge stronger than before.
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