Vice President Kwesi Amissah-Arthur says that the potential of the country’s insurance industry was great and it has to remain fully exploited to add mass to the economy.
He also challenged the pros inside insurance industry to perform more to enhance the expansion within the sector.
Vice President Amissah-Arthur made the statement whilst launched the 25th anniversary celebration on the National Insurance Commission (NIC) in Accra.
The anniversary that’s on the party’s theme: “Advancing the frontiers of Insurance in Ghana” was attended by industry players, including insurers, insurance brokers, the law, National Road Safety Commission, to name a few.
The event was employed to unveil a different NIC logo and also the re-naming of NIC building after Mr Samuel Appiah-Ampofo, a former Insurance Commissioner, who may be credited for bringing major reforms within the insurance industry in Ghana.
Vice President Amissah-Arthur stated the fact that government was convinced of sustaining and accelerating the progress made in the financial sector by pursuing policy initiatives and measures which are targeted at boosting the sector and also the insurance industry especially.
He asserted the financial services sector has achieved significant growth ever since the structural and policy reforms from the 1980s and 1990s.
He said the reforms led to reduction of hawaii domination and opened the sector to serious competition.
He said the expansion of your financial services sector throughout the last decade has exceeded every sector within the Ghanaian economy, including the petroleum driven industrial sector.
Vice President Amissah-Arthur also stated how the banks always dominate the sector and also as at June this current year the commercial banks held 75 % with the assets on the financial service industry, as the insurance sector held fewer than 5 percent from the assets.
“This shows the amount of work the public within the insurance industry will have to do today catch-up with all the banks,” he added.
Vice President Amissah-Arthur further stated which the banks seemed to have exploited the opportunities while in the financial service sector more consistently as opposed to insurance industry.
He said within the last few 30 years the Ghanaian economy has expanded combining improvement with macro-economic management with strong export growth and progress in social interventions.
He said with all the commencement of petroleum production and export offers established the latest sales of financial products.
He therefore expressed anticipation that from the next few years the financial services sector could address the requirements the changing economy.
Vice President Amissah-Arthur also charged the NIC to consider lead in marketing and sensitizing individuals within the have to insure against natural and man-made disasters including floods, markets fires and accidents.
He said the informal sector, mostly the self-employed, artisans, traders, ended up largely ignored through the insurance companies and simply gps unit perfect formal sector employees that are captured within the national data base therefore creating a gap within the potential social valuation of insurance and transaction price of insurance, adding the are widening for those within the poorer segment with the society.
He said the contribution of insurance to poverty alleviation and improvement in the welfare on the poor was of considerable importance on the country’s economy.
Ms Lydia Lariba Bawa, Commissioner of Insurance, said the NIC had worked progressively underneath the leadership of Commissioners and board members to create the group to the current status.
She said the NIC was implementing forward looking supervisory role that specializes in the identification and mitigation of risks.
She said the Commission had collaborated with a few development partners to significantly improve use of insurance for Ghanaians.
Ms Bawa said during eighteen months the Commission had taken bold steps to increase the liquidity of insurance firms to be certain the incredible to cover claims adequately and promptly.
She said the modest gains were chalked with the hard work, support and dedication of these valued stakeholders.