A new regulatory regime for micro-insurance was on Wednesday launched to help formalize and facilitate the sale of micro-insurance products at an event nicknamed the first “Ghana Micro Insurance Day”.
The regime is expected to encourage the development of micro-insurance and to ensure that policy holders were adequately protected.
The event, which was organized by the National Insurance Commission (NIC) with collaboration with the German International Cooperation (GIZ), also served as the platform to launch the book “Promoting Microinsurance in Ghana-Microinsurance as a Means for Insurance Sector Development” (a guide on best practices and recommendations for micro-insurance in Ghana), and to present players in the industry with various tools for the implementation of insurance.
Speaking at the event in Accra Mrs Nyamikeh Kyiamah, the Insurance Commissioner, defined micro-insurance as the provision of insurance products appropriate for the low-income population and added that the sector was experiencing rapid growth in the country.
She said micro-insurance currently covered 1.7 million risks.
Mrs Kyiamah noted that micro-insurance coverage in Africa had increased massively over the years, adding that the 2012 African Microinsurance Landscaping Study identified 44.4 million lives and properties covered in 39 countries.
She said the figure represented the growth of more than 200 per cent between 2008 and 2012.
Mrs Kyiamah called on the players in the insurance industry to put in their efforts to achieve positive results.
Dr Maria Tekuelve, Head of Cooperation at the Embassy of Germany, described the document as a facility that provided holistic perspective and that situated micro-insurance in the broader context of insurance and financial sector.
“Each of the six chapters addresses a key aspect of good insurance practice, providing both international perspectives and solutions tailored to the Ghanaian market”, she added.
Mrs Yvonne Quansah, Director, Financial Sector Division at the Ministry of Finance and Economic Planning, gave the assurance that Government would continue to partner all stakeholders in the financial sector to unleash their potentials.
“Under the Financial Sector Strategic Plan II, we have initiated several reforms which will lead to more significant improvement in our insurance sector”, she said.
Mrs Quansah expressed optimism that continuous commitment from stakeholders in the financial sector would ensure that the “future” was brighter.