An Economist, Mr Kwame Pianim, has challenged insurance companies to design products that will attract customers and help retain the companies in the competitive industry.
Speaking at the inauguration of Bedrock Insurance Company Limited, a privately owned indigenous company, in Accra yesterday, he said the insurance industry played a crucial role in national development and that those who managed the industry must be up to the task.
Bedrock Insurance Company obtained its operating licence from the National Insurance Commission in December 2017 and commenced operations in February 2018.
Mr Pianim indicated that a US Department of Commerce Economic Analysis suggested that globally the insurance industry had overtaken the banking sector in terms of contribution to GDP.
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While insurance’s contribution to GDP stands at 3.1 per cent, that of banking is 2.9 per cent.
He said the African Insurance Barometer 2018 Market Survey also estimated that total insurance premiums in Africa in 2017 amounted to US$60.7 billion but that constituted a mere 1.3 per cent of global insurance premiums.
“By comparison, Africa’s GDP in 2017 was estimated at $2.25 trillion which stands at 2.8 per cent of global GDP. If Africa were punching according to our weight, our insurance premium collections could be doubled as a percentage of GDP,” he stated.
Mr Pianim, who was the Guest Speaker at the event, advised the management of Bedrock Insurance to use their technical competence to design relevant products that would help the company beat off competition.
“Above all, be candid with your board and shareholders and support them to provide governance structures and policy guidance that will encourage the company and its officers to refrain from doing anything in private that they will be ashamed of to see reported on the front page of the daily tabloids.
This is the litmus test of good corporate governance,” he said.
The Chief Executive Officer (CEO) of Bedrock Insurance Company, Mr Albert Eyeson-Ghansah, said the company aimed to help Ghanaians to freely pursue their dreams in a world of uncertainties by making insurance simple to them.
He said the company was investing in the right people, the right technologies and adopting continuous improvement in its operation as they had spent time to prepare themselves by implementing a robust software in tandem with the launch.
“We envisage to be the most people-centred risk solutions provider of choice in our market and we will achieve this by treating our customers fairly and forging mutually beneficial relationships and ensuring claims are made within same day”, he said.
The CEO said the company was also committed to offering quality indemnity in the area of retail and personal line clients to those who mostly purchased motor vehicle and home protection insurances.
Mr Justice Yaw Ofori, the Commissioner of Insurance, lauded Bedrock and expressed the hope that it would help deepen confidence in the insurance industry.
“I urge you to practice good corporate governance and maintain high standards to retain the confidence the public still have in the industry,” he said.