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Ghana government pledges support for insurance industry

Page last updated at Wednesday, June 10, 2009 17:17 PM // Leave Your Comment

The government of Ghana has pledged its unflinching support for the insurance industry, considering its role in the economic development of the country. This was contained in a speech read on behalf of President John Evans Atta Mills, by the Deputy Minister of Finance and Economic Planning, Mr. Fiifi Kwetey, at the commissioning of the Corporate Head Office of Ghana Life Insurance Company Limited, in Accra, yesterday.

The Minister stated among others that the industry has increasingly become a vehicle for the mobilization of much needed funds for long term investments and very important tool for national development.

He attributed the emergence of financial institutions and insurance companies in the country to the efforts being made by the country to attract more foreign investments to consolidate efforts at strengthening a sub-regional integration and also achieve the objectives of the New Partnership for Africa’s Development (NEPAD).

Established in February 1980 as a specialist life insurance company, Ghana Life Insurance Company Limited now joins in an enviable position as one of the top ten Insurance companies in Ghana and has been a member of Ghana club 100 for four consecutive years.

Speaking at the commissioning, Mr. Ivan Avereireh, Chief Executive Officer stated that the company has attracted core investors to invest in its operations to boost its capital base and enhance its expansion.

He added that the company has revamped its staff to drive its vision to provide and deliver affordable and customized Life insurance, pensions and other similar financial plans to their clientele by a well groomed staff using modern information technology in a customer friendly environment and to adhere to best international standards and practices.

A speech read on behalf of the Commissioner of Insurance, Ms Josephine J. Amoah indicated that though the Life Insurance Sector has experienced some significant growth over the years, it is still far from realizing its full potential in terms of facilitating wealth creation and contributing to the nation’s GDP.

“However, with the separation of the life and Non-Life businesses as required by Insurance Act 2006, and the passage of the new Pensions Act by parliament, life insurance business in Ghana can look forward to prosperous days. The realization of that dream, however, requires very hard work from all parties,” she stated

She also urged industry players to conduct their business in a transparent, fair and cost effective manner, which she believes would help policy holders to appreciate the value of insurance and develop confidence and trust in insurance companies in particular, and the insurance industry as a whole.

She hinted that the National Insurance Commission has set up an actuarial unit to ensure that Life Insurance companies are adequately capitalized, solvent and employ sound actuarial practices in their operations and also collaborating with some development partners to develop micro insurance in order to afford the insurance companies, the opportunity to reach out the majority of Ghanaians who operate in the informal sector.

Source: Ghanaian Chronicle



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