Kwame Pianim, an economist, has called on government to ensure macro-economic stability so that the good performance in the industry will not be whittled away by depreciation in the external value of Ghana’s currency.
According to him, there is the need to minimize the ruinous competition in the general business by having a group of skilled actuarial professionals, who will assess risks and provide benchmark pricing guidelines to the industry.
Mr. Pianim also called for regulatory support by expanding the list of mandatory insurance covers beyond the current third party for motor vehicles and fire insurance for private commercial property.
“Why not consider mandatory insurance for these all government vehicles, all commercial buses and rental vehicles should be comprehensively insured; all residential houses in the district, regional and national capitals,” he added.
This, according to him, would dampen the unhealthy appetite and clamour for district capitals.
Insure buildings under construction
Furthermore, he stated: “All buildings under construction must secure insurance as part of the permits required for starting construction, all places of worship where more than hundred people congregate must secure insurance cover for fire and personal injury.
“All mobile money agents should be registered and insured by the service providers against theft, loss or fraud perpetrated on third parties by their agents.”
He also called on Metropolitan, Municipal and District Assemblies to insure three or five major markets against fire, flood and wind damage, adding that the percentage related to GNPC share in oil and gas installations and operations should be locally insured with local insurers, with the top 10 insurers getting 50% of the placements while the balance is shared equally among the 19 remaining insurers.
1D1F
“If our industry attained the Africa penetration average of 2.8% of GDP this must mean on an annual basis the industry generates gross premiums of over $1.2 billion. Even if $600 million were available to fund our ‘One-District, One Factory’ agenda or the modernization and transformation of our agriculture, the prospects of Ghana will be looking very bright.
Opt for protection
“As climate change related natural disasters have increased around the world in recent years, and this year closer to home around Eastern and Southern Africa, the expectations are that efforts will be made to sensitize business and individuals to take adequate insurance protection to minimize losses from such disasters.”
Local currency
He made reference to a recent insurance survey that sought to put a damper on a major fear that local insurers would continue to be muscled out of the African market.
“The weak local currencies and the resulting lower profitability in dollar terms are cited as major reasons for the lack of further interest among external investors to invest in the insurance industry in Africa.
Local businesses
“We should keep an eye out for the gold, oil and gas and cocoa shipping businesses that are not and should not necessarily be denominated in local currency. The major source of risk that may pose a threat to local insurers may come from the regulatory side if efforts to impose risk-based minimum capital requirements are not nuanced and related closely to the actual risk in the areas in which the local insurers are engaged.”
CEO’s assurance
Albert Eyeson-Ghansah, Chief Executive Officer Of Bedrock Insurance Company Limited, in an address, said insurance is about paying claims promptly.
“It’s in that light that Bedrock has quickly moved to institute its Bedrock Fast Track Claims, where claims of up to GH¢3,000 reported before 3pm, are paid on the same day.
“This is to demonstrate that Bedrock is committed to very high standards of customer care.”
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