Insurance companies have been urged to diversify their businesses to enable them remain operational in spite of the impact of the novel coronavirus on the Ghanaian economy and the global economy at large.
The Chief Executive Officer (CEO) of GLICO Group, Mr. Edward Forkuo Kyei, stated this while speaking at the fourth Webinar series on the effect of COVID-19 on Corporate Ghana and the Insurance Industry.
Mr. Kyei emphasized that though the Coronavirus pandemic had negatively affected the Ghanaian insurance industry, it has also spawned businesses which insurance companies could tap to remain in business and boost their revenues.
The webinar which was organized by Krif Ghana Limited, publishers of Integrity Magazine, was graced by seasoned insurers across the country who took turns to enlighten the participants about the present and future prospects and outlook of the insurance industry. The webinar was themed, ‘Effects of COVID-19 on Corporate Ghana- the Insurance industry’.
In his address, Mr. Kyei further recommended that insurance companies could venture into establishing vehicle repairs companies to attend to their policyholders’ vehicles.
According to him, by so doing, insurance companies would retain control of the repairs of customers’ vehicles and maintain a high level of service delivery to customers. He also added that this would help them to decrease the cost of operations and generate additional incomes to improve their revenues.
The GLICO CEO said COVID-19 had opened the doors for the use of various technologies to conduct virtual meetings, which are as effective as face-to-face meetings.
“These turbulent times may very well be the turning point that will drive transformational change across the insurance industry.”
The Managing Director of Enterprise Insurance Company Limited, Madam Ernestina Abeh, also present for the webinar indicated that, the country’s general insurance industry had not been overwhelmed with “large claims from the pandemic” as compared to western markets.
The CEO of Krif Ghana Limited and Editor of the Integrity Magazine, Reverend Kennedy Okosun, in his address reiterated GLICO’s CEO point by urging insurance companies to do more in building trust with their stakeholders.
“In this COVID-19 era, a well-developed insurance industry is a requisite necessity in the efforts to improve the stability of the financial markets and protect individuals and businesses from losses in these difficult times of the COVID-19 pandemic.”
He added that lack of resolve by insurers will create liquidity strains due to the gravity of impact of the outbreak on the economy.
“The world economy has seen a downward spiral since the pandemic broke out and as usual the insurance industry in Ghana has been impacted adversely adding there have been fears the COVID-19 situation could begin to create liquidity strains even for insurers.”