Dr. Justice Yaw Ofori, the commissioner of insurance, has asked major participants in the insurance industry to change their operations and business strategies in order to meet the rising demands of policyholders.
He claims that the insurance industry in emerging nations has undergone significant growth and quick change, and he encourages African businesses to do the same.
On September 26, Dr. Justice Ofori spoke to attendees at the inaugural session of the AIRDC and AISDAC educational conference in Accra.
“The landscape of insurance especially in developing countries keeps changing due to rising policyholder expectations and technological development and as such, insurers and reinsurers have no choice but to transform their business and operating models to re-emerge stronger than before.”
“Key players from the global market seek to exploit these untapped opportunities. It is therefore important for regulators and practitioners alike to set requirements for guidance in this regard. Insurance business is built on trust and the commitment to fulfill promises, so a suitable dose of prudential supervision is necessary for it to grow and flourish,” Dr. Ofori added.
He however noted that although there are vast opportunities in the insurance sector, the market in developing countries still faces some notable challenges.
These include; trust in insurance, unhealthy competition, bad corporate governance practices and fluctuating boardroom ethics.
The AIRDC and AISDAC educational conference was on the theme; “Building Resilience in the heat of a Global Economic Tussle.”