The Vice-President, Dr Mahamudu Bawumia, has urged stakeholders in the insurance industry to work together to engender trust in the industry to support a financially inclusive society.
Such a performance, Dr Bawumia indicated, should ultimately reflect averagely on all key drivers of the economy.The Vice-President was speaking at the Annual General Meeting and Education Meeting of the West African Insurance Companies Association (WAICA) last Friday.He said the insurance industry was certainly a critical driver that could contribute to the country’s growth.
The two-day conference, which attracted delegates from across the sub-region, was on the theme: “The New normal, fact or fiction – How realistic is the practice and spread of insurance in West Africa?”
Dr Bawumia said the quest to help develop the insurance markets of respective member countries was aimed at growing the economies, especially after the downturn of the COVID-19 pandemic that had devastated many economies in the last few years.
He, therefore, commended the association’s strategies towards improving insurance coverage and penetration in West Africa, saying, “it has been proven globally that there is a strong correlation between the levels of economic development of a country and how developed the insurance sector of the country is.”
Considering the tremendous benefits of insurance and its contribution to the economy of Ghana, the Vice-President said the government had put in place measures such as the passage of a new Insurance Act last year, which provided a stringent regulatory framework to protect consumers and increase accessibility of insurance to the Ghanaian populace, particularly to the informal sector and low income consumers.
“It also provides measures aimed at strengthening the corporate governance practices within the industry and in accordance with international best principles of risk-based supervisory framework,” the Vice-President stated.
Dr Bawumia further explained that the government had also embarked on a recapitalisation of the insurance industry to help strengthen the balance sheet of regulated insurance entities.
That, he said, was aimed at enhancing the underwriting capacity of insurance companies to enable them to assume higher insurance risk.