The Bank of Ghana (BoG) has charged insurance operators to use innovative ideas and strategies to deepen the penetration of the industry to complement the banking sector in mobilising resources for economic growth.
Dela Selormey, Head, Banking Supervision Department, Bank of Ghana, said the insurance sector is seen as a major vehicle for domestic resource mobilisation and facilitates accumulation of medium to long-term stable funds for investments in the economy.
Mr. Selormey made these known in Accra at the launch of the Bancassurance partnership with International Commercial Bank (ICB) and Enterprise Life Assurance Company (ELAC) in Accra.
Available figures show that insurance penetration in the country has been very low, growing at a rate of 1.6 percent up to 2008.
This indicates that many households are not taking advantage of the products and services that insurance firms provide against unforeseen difficulties that could disrupt their lives.
The BoG will continue to pursue policies and programmes aimed at developing a vibrant financial system capable of harnessing financial resources for the development and growth of the economy, he stated.
“We appreciate the healthy working relationship that is emerging between banking institutions and insurance companies. It is our belief that this cooperation will be deepened to enhance performance of the banking and the insurance sectors to support development of the national economy. ”
The partnership is aimed at providing an immense opportunity to reach more households and businesses with suitably designed and priced products that can protect their patrons from the financial difficulties that are associated with living conditions.
He suggested that practitioners should examine, design and develop appropriate products that suit the needs of the populace, as well as adopt extensive public education to raise awareness about the benefits that insurance offers.
Mr. C. C. Bruce (Jnr), Executive Director of Enterprise Life Assurance (ELAC), said Bancassurance is a partnership that hinges on the strengths of both partners.