2 Insurers merge into Impact Life Insurance
TWO companies, the Ghana Union Assurance (GUA) Life and Phoenix Life Assurance Company, have merged their operations into one entity to help increase insurance penetration in the country.
The new entity has been named Impact Life Insurance and was unveiled in Accra last Wednesday.
The Chief Executive Officer (CEO) of Impact Life Insurance, Sheriff Abudu, described the unveiling of the newly merged brand as the most significant and historic one in Ghana’s life insurance industry.
He said the merger was the first in the industry meant to strengthen both corporate and micro insurance, solidify retail insurance and transform the sector with relentless creativity and innovation.
Mr Abudu said Ghana’s insurance industry was one of the most attractive sectors in the country.
“Currently, overall insurance penetration in the country is around 1.1 per cent of gross domestic product (GDP) compared to about 2.8 per cent in Kenya and a whopping 17 per cent in South Africa,” he said.
He explained that Life insurance penetration was less than 0.5 per cent of GDP, an indication of the growth potential that existed.
The MD of impact Life said the life insurance sector was also less dependent on entrenched brokers, with just eight per cent of life insurance distribution channels available compared to 44 per cent in the non-life insurance.
“Our industry is also benefiting from two new regulatory developments – the expected passing of a new mandatory group life law requiring companies to procure life insurance policies for their employees and the commencement of annuities.”
“All these present a unique environment for a progressive business like ours to emerge and transform the industry with insights, energy, new blood, dynamism and unprecedented growth.
“It is a challenge of huge proportions and quite daunting. It is a feat that is historic in its scale and daring in its outlook, given the current global and local macroeconomic situation,” Mr Abudu added.
He said the company was creating a new and unique brand with a fresh corporate image that reflected boldness and cutting-edge services.
The brand, he said, would appeal to young, first-time insurance customers across the country and beyond.
“Life insurance is probably the most significantly important and yet often ignored part of life under the sun.
“We do not need to approach the subject with grim and uncertainty ever again. We are here to change that narrative; transform the paradigm shift and provide a ray of sunshine and hope for Ghanaians.
“Impact Life Insurance is not making any promises; we are here to be as focused and as committed as ever to the needs of our customers and potential ones,” the MD said.