Vice President Amissah-Arthur
Vice President Kwesi Amissah-Arthur, has urged operators of Ghana's insurance industry to take advantage of technology and develop robust information infrastructure, to improve upon their services.
He noted that the insurance industry in Ghana has been too conservative and less proactive, and unwilling to venture outside its comfort zone but “the time had come for the industry to adapt its product and services to the needs, circumstances and aspirations of the people”.
The Vice President made the call in a speech read on his behalf by Fiifi Fiavi Kwetey, Minister at the Presidency in Charge of Financial and Allied Institutions, at the second edition of Life Insurance conference, organized by the Ghana Insurance Association (GIA) in Accra.
The conference was on the theme: “Compulsory Group Life Insurance Cover: A Tool for Sustainable Socio-Economic Development”.
It was also to highlight the relevance of group life insurance in the socio-economic development of the country as well as serve as a vehicle for mobilizing long term investible funds for development projects.
Mr. Amissah-Arthur stated that insurance was critical to the financial service sector, and it had constituted the bedrock for socio-economic development.
“A viable and vibrant insurance sector is, therefore, a pre-requisite for sustainable socio-economic development of all nations.”
According to him, a few African countries were doing better than Ghana and cited South Africa which had a penetration level of 14.8 per cent, Namibia 7.3 per cent, Kenya, 2.8 per cent.
The Vice President said on the whole, the continent‘s insurance market contributed less than two per cent of the world’s total insurance premiums in 2011 and 2012.
He expressed the hope that operators of the insurance sector would undertake the necessary repositioning and take advantage of the opportunities and overcome challenges and also commended the industry for introducing a weather-indexed agricultural insurance in Ghana with the support of the German Development Agency (GIZ) and other stakeholder.
The Vice President mentioned that government believed that the availability of insurance protection for the agricultural sector would not only ensure compensation to farmers but also financial institutions would be more comfortable granting facilities in support of agriculture.
“Government is also aware of efforts the industry is making to expand the coverage of insurance to the informal sector and the rural folks through the introduction of micro insurance product and services,” he said.
Touching on the recent market fires in the country, Mr. Amissah-Arthur said the recent fires in some markets across the country and the perennial flood that visited havoc on operators in the informal economy, called into question the lack of insurance interventions for this critical segment of the economy.
He said government will continue to provide effective and efficient legal and regulatory environment to ensure a thriving financial sector, including insurance.
Source : GNA