Venture into huge construction insurance, Railways Minister challenges insurance companies

BY: Mary Mensah
Mr Joe Ghartey (middle) interacting with Mr Justice Ofori (right) Commissioner of Insurance and Mr Agyenim-Boateng  Deputy Minister of Railways

The Minister of Railways Development, Mr Joe Ghartey, has challenged insurance companies in the country to come out of their comfort zone and venture into huge construction insurance.

He said the railway sector offers huge opportunities to the insurers and there is, therefore, the need for them to take advantage by guaranteeing the financing of the sector.

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The minister, who was speaking at the second cocktail of the Chairman of the National Insurance Commission (NIC), in Accra last Friday, said the insurance sector played a critical role in the socio-economic development of the country and it needed to take care of all the huge construction.

Railway sector

Mr Ghartey said the government’s programme to develop the railway sector was on course and hinted that Ghana and Burkina Faso were currently working together to get a rail line from the Tema Harbour to Ouagadougou.


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He, therefore, urged the insurance sector to set up a working group and collaborate with the Ministry in order to harness opportunities in the ongoing projects, as the railway sector would teach the country how to do big projects.

Projects

The Commissioner of Insurance, Mr Justice Ofori, also in an address, said the objective of the NIC had been to commit its energies to building insurance trust, growing insurance trust, insurance penetration and increasing access to insurance, leading to higher insurance coverage.

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He said having the insurance bill passed into law and going live with the electronic motor insurance database, were two key projects that would enable the NIC to achieve its objectives.

“The electronic motor insurance database will host all underwritten motor insurance policies.

This database will curb the influx of fake motor insurance stickers, enable the Ghana Police Service and the DVLA verify the validity of the stickers and also provide insurance to the insuring public,” he said

2019

Mr Ofori said another vital project on the horizon of the commission for 2019, was the training of approximately 10,000 tertiary and senior high school graduates in risk and insurance effective salesmanship.

He added that such certified persons would serve as a recruitment pool for insurers, who will only have to be trained in the specific company/’s products and services.

He said in 2019, the commission intended to also increase its regional presence.

“Currently our aim had been to open more offices in the regions to improve the relationship between insurance and the insuring public. Next year there will be greater collaboration and meaningful engagement to enable us to achieve our goals of economic growth and financial wellness,” he added.

The Board Chairman of the NIC, Mr E. Ray Ankrah, said the role of insurance in the development of any economy could not be over emphasised.

He said insurance made possible the transfer of risks from businesses and individuals to insurance companies and aided in the mobilisation of long-term savings to provide the needed capital for entrepreneurs and businesses, as well as for national development.