Insurance Commission pushes for new law
Commissioner of Insurance Justice Yaw Ofori has called on the Ministry of Finance to support the passage of the Insurance Bill to expedite the revival of the insurance industry.
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Speaking during a courtesy call on a Deputy Minister of Finance, Mr Charles Kofi Adu Boahen, Mr Ofori said the bill, when passed would, among other things, help increase insurance penetration rate which he said currently stood below two per cent.
The bill, he added, was aimed at protecting both insurance companies and subscribers, improve the efficiency and sustainability of insurance service delivery and help address the challenges facing the industry.
“Some work has been done on the bill, which includes modernisation and correction, and, therefore, we need to push for Parliament to pass the bill into an act,” he said.
Mr Ofori said the new insurance bill would also allow the National Insurance Commission (NIC) and other stakeholders to collaborate effectively to develop and expand the industry, adding, “This will help us put in place the necessary measures to increase the penetration rate.”
Penetration rate
On ways to increase the penetration rate, he explained that the NIC was working on measures that would help change the negative mindset people had about insurance.
“We want people to see insurance as a necessary and important aspect of their lives and not just something that the law demanded. Also, we want to make sure that penetration is high by targeting a double digit by the end of the next three to four years. Our focus will also be on the informal sector, which includes low income earners,” he said.
To make that dream a reality, he advised insurance companies to comply with the NIC’s guidelines on claim payment.
“The NIC will not hesitate to crack the whip on companies that fail to adhere to the guidelines,’’ he said.
He indicated that the commission would also build the capacity of players in the micro-insurance sector, such as the agricultural sector, to help push the penetration drive in the industry.
Support
For his part, Mr Adu Boahen said the government was committed to supporting the growth of the insurance industry by engaging the NIC and other stakeholders to boost the confidence people had in the industry and also make insurance companies more competitive.
“Insurance is crucial to the industrialisation agenda of this government, which is essential to the economic growth that we all desire,’’ he said.