Tag: National Insurance Commission

  • The National Insurance Commission needs a strong leader

    The National Insurance Commission needs a strong leader

    The Ghana insurance industry is rife with speculation about who will head the National Insurance Commission for the next four years. The industry must strategically position itself to provide financial security for the anticipated 24-Hour Economy promised by His Excellency John Dramani Mahama, while also capitalizing on the expected economic growth that lies ahead.

    In my previous article, I outlined the leading candidates whose credentials are being reviewed for the top position at the National Insurance Commission (NIC). Unless there are last-minute changes, one of these individuals is poised to become Ghana’s next Insurance Commissioner. While I personally wish the president had a broader pool of candidates to choose from, I have resigned myself to the saying that “when life gives you lemons, make lemonade.” With that in mind, let me take you through my reasoning on who should be the next Commissioner of Insurance.

    A REGULATOR AT A CROSSROADS

    The National Insurance Commission (NIC) is currently in a poor state, reflecting the weakness of its present leadership. A new Commissioner is expected to be announced in the coming days to succeed the Akufo-Addo-appointed Acting Commissioner. The Commissioner will have a clear set of challenges to lead the regulatory organisation through.

    The NPP’s Domestic Debt Exchange has left many insurance companies with locked-up funds. The new Commissioner will have to be mindful of the state of liquidity of the industry and be careful with the changes (s)he brings on board.

    The field of insurance is seeing many significant changes all over the world. There are issues around agricultural sustainability and the role of insurance, climate change, cyber risk, and the place of artificial intelligence in insurance delivery. The new Commissioner will have to think outside the box and apply the tools of regulation to grow the industry beyond the reliance on motor insurance.

    For years, the insurance industry has seen little growth in real terms. Penetration rates have remained poorly low despite the assurances from successive Commissioners to change the situation. Questions remain whether Health Insurance and its regulation belong properly to the aegis of the National Insurance Commission or not and whether health coverage should be factored into insurance penetration.

    These are but a few of the issues that a new Insurance Commissioner must have his eyes on and deliver results that will benefit the industry, the insuring public, and Ghana at large.

    REKINDLING THE SPIRIT OF THE WORKFORCE

    The insurance regulatory body has been leaderless for over a year since Justice Yaw Ofori left. Justice, for all his shortcomings and his dedication to the bidding of the former finance minister, had some leadership presence and awareness. On issues that he was right, the NIC had potent representation in him. That all died with his exit.

    With the lethargy at the NIC, the incoming leader faces the immediate hurdle of revitalizing the organization by restoring hope and optimism among its employees. This is arguably the most daunting part of the task.

    The NIC is home to some of the finest Ghanaian professionals, and with the right leadership, they can be inspired to perform at their best. On the specific challenge of reigniting optimism within the Commission, Seth Aklasi seems to stand out among the candidates. His tenure at the helm of Donewell Insurance demonstrates his ability to move people even against their will to achieve what he desires. In the new role, he will have to prove that he can build consensus and bring stakeholders on board.

    LEADING WITH CONFIDENCE

    The next NIC Commissioner must be assertive and have the confidence to make bold decisions. This is very important if the Commission can maintain order in the industry and ensure that its objectives are met consistently.

    If Seth Aklasi has any real weakness, it is probably his excessive confidence which is often seen as arrogance. Indeed, it is his confidence and strong-will that has earned him some detractors. However, the NIC at this juncture needs a strong agent of change to steer it in the right direction. That is where a man like Seth Aklasi may fit the bill.

    KNOWING SETH AKLASI

    Aklasi is an Associate of the Chartered Insurance Institute in the United Kingdom and a Fellow of the Chartered Insurance Institute of Ghana (FCIIG). He holds a Master of Science degree in Insurance and Risk Management from Bayes Business School (formerly Cass Business School) at City, University of London. He obtained a Bachelor of Arts degree in Social Science (Geography) from the University of Cape Coast.

    CONCLUSION
    His Excellency John Dramani Mahama has sent a strong signal of the leadership we can expect over the next 4 years. The insurance industry cannot be left behind in the sea of change that beckons. Everything begins with getting the appointment of the Insurance Commissioner right. A growing economy under the 24-Hour model proposed by His Excellency John Mahama portends economic growth. If the industry needed any impetus to achieve significant growth in real terms, this is the signal.

    Dr. Kwame Oteng
    mailto:drkwameoteng@gmail.com
    Dr. Kwame Oteng is a Ghanaian who resides primarily in Alabama, USA. He is an actuary at Nationwide Mutual Insurance Company and researches on insurance in Africa.

    DISCLAIMER: Independentghana.com will not be liable for any inaccuracies contained in this article. The views expressed in the article are solely those of the author’s, and do not reflect those of The Independent Ghana

  • Who heads the National Insurance Commission?

    Who heads the National Insurance Commission?

    As President John Dramani Mahama continues to make appointments into key positions to help with his government’s agenda to reset Ghana, players in the insurance industry are beginning to wonder who may be heading to the National Insurance Commission (NIC) as Commissioner.

    The NIC is the regulatory body of the Ghana insurance industry and its mandate as enshrined in the Insurance Act, 2021 (Act 1061) includes regulation and supervision of the insurance industry, consumer protection, licensing and registration, market development, risk management and solvency monitoring, implementation of policies and standards, capacity building and training, data collection and reporting and support for government policies.

    Getting the appointment of the NIC Commissioner right has significant implications for the growth of the industry. As is well-known, the insurance industry has remained a pale shadow of its potential with a perpetually atrophied penetration rate below 2%. The industry has yet to become a major contributor to the economy by way of jobs and tax revenue.

    Even in its primary role of offering a financial cushion to citizens, the industry has failed to show any direction when disasters have struck the economy. Companies in the industry are bedevilled with unsustainable premiums, excessive stifling regulation, and slow growth. President Mahama has promised a strong economy and growth through the 24 Hour Economy among other initiatives.

    The soon-to-be-confirmed Finance Minister, Dr. Cassiel Ato Forson has signalled strong leadership to stabilise the economy and deliver shared growth and prosperity. Insuring the 24 Hour economy will require fresh thinking and a departure from business as usual if the insurance industry is to become relevant.

    A few names are making the rounds as the lobbying for the role of the Insurance Commissioner takes steam. Unlike in previous regimes, there are complex interests emerging. This article profiles some of the popular names and attempts a look at what each candidate brings to the position.

    Michael Kofi Andoh

    Michael Andoh is the Acting Commissioner, a position he was appointed into by the Akufo-Addo NPP government. The previous government had a strong interest in having him as the Commissioner but he failed to meet the qualification criteria before they were voted out by the people of Ghana. Kofi, as he is affectionately called, is fighting to stay in the position as Acting Commissioner and to eventually be confirmed by the Mahama government.

    In addition to his backers in the previous government who would want to keep their influence and control of the industry through him, he has managed to get the support of influential people close to the president, key amongst whom is Dr. Joseph Dorh, the Managing Director of Prime Insurance. If the attempts to hold on to power fail, Andoh would want to put forward Seth Eshun, an ally of his who was sacked from the NIC a few years back for Dorh to push forward.

    Faris Elias Attrikie

    Faris Attrickie was the General Manager in charge of Technical Operations at SIC until his employment was terminated by the immediate past Managing Director. Attrickie was a jovial character who created laughter everywhere he went.

    Faris is staging a come-back move into the industry and he has his eyes firmly set on the National Insurance Commission top job. Faris Attrickie is technically savvy in insurance operations and has over 20 years of industry experience.

    Seth Aklasi

    Seth Aklasi is an industry veteran who is on his way out as the Managing Director of Donewell Insurance Company Limited in a few months. The insurance industry has a regulation that limits Managing Directors who hold no shares in the companies they manage to a maximum of 10 years. Seth’s 10 years at Donewell is up and he is desperately looking for what he calls a “retirement job”.

    Being the current President of the Ghana Insurers Association (GIA), Seth has a lot going for him. Additionally, his bid is being championed by a strong man, Fiifi Kwetey, the General Secretary of the NDC. Fiifi’s interest is primarily to get the job for an Ewe brother.

    For an industry in need of fresh energy, experts are wondering whether the Commissioner job should be treated as a retirement job.

    Dr. Martha Adusei

    Dr Martha Adusei is the Ashanti Regional Area Manager of SIC. She is an experienced marketing professional with over 20 years experience in the insurance industry. Although strongly linked with officials of former president Akufo-Addo’s government, she is lobbying through members of the NDC Ashanti regional leadership.

    Martha is hardly known in the broader industry and it is difficult to tell what she could bring to the top job if she were to get selected.

    Dr. Abiba Zakariah

    Abiba Zakariah is an industry old lady and former Managing Director of Ghana Reinsurance Company. In addition to her gender advantage especially in the age of affirmative action, Abiba is a “Northerner” and is therefore viewed to enjoy the support of President John Mahama. Abiba recently enrolled as a trainee pastor at the Assemblies of God Church, a strategic move which is believed will give her a further advantage as President Mahama is himself a member of the church.

    The key question about Abiba is whether she has anything left in her tank to drive accelerated growth in the industry since she is in the dying embers of her career. Just like Seth, the NIC job appears to be her dream retirement job. People in her close circles speak of her personal ambition to become the most powerful woman in the insurance industry before she exits. As of now, the stars appear to be aligned for her to realise her long-held ambition.

    Henry Bukari

    Henry Bukari is the Managing Director of Phoenix Insurance. Henry is emerging as a compromise candidate who may surprise everyone and get the nod. He is being sponsored by Emmanuel Adu-Sarkodee, the owner of Phoenix Insurance Company Limited, the founder of CDH Group.

    Henry is currently the chair of the Ecowas Brown Card Board in Ghana. He is a lawyer and has been a stable hand steering Phoenix Insurance since becoming Managing Director about seven years ago. Henry is liked by the industry given his soft nature. Key concerns about Henry are how he will moderate the interest of Sarkodee if he were to get the job of Commissioner, and whether he has any innovation in his bones to lead the transformation of the NIC.

    Conclusion

    The last time the National Insurance Commission saw a real decisive leader was during the tenure of Ms. Lydia Lariba Bawah. Ms Bawah implemented the No Premium, No Cover Directive which saved the industry from near collapse. Justice Yaw Ofori who came after Ms Bawah was a strong man whose tenure served to strategically aid the industry take-over of Ken Ofori-Attah owned Enterprise Insurance. Since Justice retired and Andoh took over, the industry has almost ground to a halt. It remains to be seen what decision the appointing authorities will make to revive the insurance industry and reset it on a path of accelerated growth.

    About the Writer
    Dr. Kwame Oteng is a Ghanaian actuary based in Alabama, USA. He works with Nationwide Mutual Insurance Company and focuses his research on the insurance landscape in Africa. You can reach him at drkwameoteng@gmail.com.

  • IBAG to discuss effects of global economic challenges

    IBAG to discuss effects of global economic challenges

    The Insurance Brokers Association of Ghana (IBAG) is all set to host the 8th edition of its annual conference.

    The 2023 edition of the IBAG Educational Conference and Exhibition will focus on the effect of Global Economic Challenges and the Domestic Debt Exchange Programme on the insurance industry.

    IBAG Conference and Exhibition is a forum organised annually for continuing professional development that presents delegates with an opportunity to network and build relationships, learn and share best practices, innovative ideas, and strategies for the development of the insurance industry.

    This year’s conference will be held at Eusbett Hotel, Sunyani in the Bono Region from March 21 to March 25.

    Over 200 insurance players including Insurance Brokers, Reinsurance Brokers, Insurance Companies, Reinsurance Companies, the Insurance Regulator (NIC), as well as other stakeholders including the Press, will be attending the conference.

    Country Senior Partner at accounting and auditing firm, PwC Ghana Ltd., Vish Ashiagbor will be at the conference to deliver a presentation on the topic “The Effect of the Global Economic Challenges on the Ghanaian Insurance Industry.”

    The presentation will primarily focus on the effect of the global economic challenges on the Ghanaian insurance industry (brokers, insurers, reinsurers, insuring public, etc.)

    In addition, the lessons learnt and what interventions the insurance players and the regulator can initiate to mitigate the impact as well as what strategies insurance players could adopt to manoeuvre through these difficult times and become profitable will be touched on.

    The Commissioner of Insurance at the National Insurance Commission (NIC), Prof. Justice Yaw Ofori is scheduled to Chair the Opening Ceremony on March 22.

    The Bono Regional Minister, Hon. Justina Owusu-Banahene as well as Sunyani Queen mother, Nana Akosua Dua Asor Sika Brayie II are all expected to grace the occasion.

    At the Conference, there will be a Young Executives’ Forum on “Personal and Professional Development” that will be hosted by the CEO of ASIAC Ltd., Solomon Lartey who is also President of the CIIG.

    The conference will also feature a CEOs’ Forum on the theme, “Returning to Underwriting Profits: The Perspective of Industry Players” as well as an Open Forum on the Implementation of Marine Cargo Insurance, Debt Exchange Programme & Life Insurance, etc.

    The Insurance Brokers Association led by the Executive Council will also make courtesy visits to selected Senior High Schools in the Bono Region to donate some items to their schools.

    During the visits, IBAG will use the opportunity to engage the students on insurance and career opportunities in the insurance industry.

    As part of the Conference, the Association shall also embark on a health walk and tree planting exercises as well as other recreational activities such as Akwaaba Barbeque & Dinner, Indoor & Outdoor Games, Talent Night, etc. as well as Dinner Dance & Awards.

  • NIC encourages commercial property owners to obtain insurance

    NIC encourages commercial property owners to obtain insurance

    The Northern Regional office of the National Insurance Commission (NIC) has urged commercial property owners and businesses to insure their investments against unforeseen circumstances.

    To drum home the importance of insurance, the regional office is to embark on awareness creation to educate shops, stores and construction sites in the Metropolis and the Sagnerigu Municipality of the Northern Region on the importance of insurance for private commercial property.

    The exercise will help create awareness of the need for property owners to insure their properties to ensure the safety of their occupants and those working around.

    Insuring private commercial properties helps to protect occupants of the facilities, and relieve the burden on individuals and government in case of unforeseen disasters.

    The new Insurance Act 2021 (ACT 1061) was enacted in Ghana to replace the previous Insurance Act of 2006, Act 724, and bring regulation of the insurance industry into conformity with international frameworks and supervisory standards, and to increase its competitiveness on the international market.

    The new Act makes it mandatory for commercial buildings, both completed and under construction, to be covered by an insurance policy; and tenants need to demand an insurance certificate before patronizing it to safeguard their future.

    Checks by the B&FT Tamale team revealed that the majority of facilities destroyed by fire or rain in the region were not covered with an insurance package, and therefore occupants of those facilities could not be supported with any relief when disaster occurred.

    Some homes had only fire extinguishers but no knowledge of how they should be used in case of emergency, and only few had insured their properties.

    If the facilities were insured, the insurance companies or brokers would have come to their aid and assessed the damage and cost, and pay for them.

    The Northern Regional Manager for National Insurance Commission (NIC), Joseph Agyampoak Akanlagmin, in response to the B&FT said the Commission observed that the outbreak of fires and other disasters in the region result in occupants losing every property, and not getting any support due to failure of the individual or owners of the facilities to insure them.

    “In spite of the several benefits that come with insuring one’s property, many property owners do not see the need to insure their property,” he said.

    He said most of those who had fire certificates had not renewed them after their expiry, and therefore posed a threat.

    He stressed the need for commercial facility owners to comply with the insurance law by insuring their facilities to cover any disaster.

    Providing insurance cover might not benefit you today but will do so in future, and so insuring your property is the best step everyone must take to secure the future he said.

    He explained any third party who visits a facility and there is an accident resulting in injury or death, the insurance package covers them.

    Touching on insurance brokers and companies, he said efforts are also being made to educate operators to ensure professionalism in the delivery of their duties to win the trust and confidence of their clients.

    “We would also like to advise them to build the capacity of their agents and staff to communicate well with the clients. As a Commission, we will continue to engage stakeholders and use the media to educate the public until all understand the need to insure their properties,” he added.

  • Commercial, private drivers do not see any benefit of vehicle insurance – Report

    Commercial, private drivers do not see any benefit of vehicle insurance – Report

    The report noted that 82% of Ghanaian drivers often did not have an interest in filing complaints

    Majority of drivers both commercial and private do not see any benefit from insurance companies in Ghana due to the perceived unwillingness and refusal of payments of claims.

    The event, which brought together stakeholders from various sectors took place on Wednesday January 25, 2023 in Accra, to launch YAFO “Driver MO” report and to find ways of improving the insurance sector.

    Nathaniel Dwamena, President of YAFO, said that most drivers expressed discontent with comprehensive insurance as it is expensive compared to income levels.

    He said the drivers only showed interest in vehicle insurance because it was mandatory and enforced by the police.

    He said drivers complained about delays in insurance claims and sometimes to the extent of not being paid by the insurance company.

    He said 82 percent of Ghanaian drivers often did not have an interest in filing complaints due to bureaucratic delays in the process.

    The research stated that insurance companies required some documents such as doctors’ report, car papers, police commentary reports, passports, ID card, and witnesses, among others, making drivers reluctant to collect insurance claims.

    After critical evaluation of the research, it was noticed that insurance regulations are generally favourable to insurance companies, the National Insurance Commission and insurance companies needed to do more to provide better and innovative services in response to the needs of the average vehicle owner.

    However, YOFA recommended that insurance companies should abolish the third party and categorize comprehensive insurance, digitise the issuance of insurance stickers and build trust between the insurers and vehicle insurance subscribers.

    It noted that most vehicle insurance policyholders were not aware of the documents needed to access claims.

    Insurance is unlikely to be a factor in good driving behaviour in a situation where insurance is purchased at a fixed rate for all drivers, as is the case in Ghana.

    In contrast, in other countries, vehicle insurance is based on an individual profile rather than a fixed fee. A driver’s insurance premium is determined by the individual’s profile.

    Moreover, concentrating more on individual drivers’ safety measures, and behavioural patterns as a consideration in determining insurance coverage might lead to drivers/vehicle owners placing a higher value on vehicle insurance.

    However, Young Africans for Opportunities (YAFO) is an independent, non-profit, non-commercial organization with the core aim to educate, train, and inspire students, entrepreneurs and young professionals to create, innovate, and promote entrepreneurship through public policy advocacy for a free and prosperous Africa.

    YAFO expressed hope that the transformative dialogue and recommendations will act as a catalyst for the much-needed reform in Ghana’s vehicle insurance market.

    Source: Ghanaweb

  • 8 banks engaged in government business may be hard hit by debt exchange program – Report

    According to reports, the country’s debt exchange programme may be especially harmful to eight banks.

    Some of the investments made by the banks whose names have been omitted are in government securities, mainly bonds, issued by the government of Ghana.

    According to myjoyonline.com, these institutions could experience losses if the debt exchange programme, which aims to exchange bonds worth approximately GH137 billion, is effective.

    The programme may have an impact on its liquidity situation based on the size of its balance sheet, even though the loss’s exact size is yet unknown.

    According to the November 2022 Ghana Fixed Income Market report, eight banks—four foreign and four domestic—controlled around 83.91 percent of the debt market.

    The myjoyonline.com report also said despite the knowledge of a possible debt restructuring, the banks traded a significant volume of bonds and bills on the bond market in the month of November 2022.

    The report also stated that these banks, if push comes to shove, could be cushioned by their parent companies.

    Meanwhile, rating agencies have downgraded four Ghanaian banks this year. The downgrades came after Ghana’s creditworthiness status was downgraded consistently throughout 2022.

    “The downgrade of the banks follows the downgrade of Ghana’s Long-Term IDRs as the banks’ standalone credit profiles are closely linked to that of the sovereign (Ghana),” one of the rating agencies said.

    Also, six leading investment banks that control about 89.13% of the debt instrument market may be affected by a restructuring.

    During the announcement of the debt program by the finance minister on December 5, 2022, he stated that a financial Stability Fund would be created to offer liquidity support to banks during the exchange program.

    According to him, the fund will provide liquidity support to banks, pension funds, insurance companies, fund managers, and collective investment schemes to ensure that they can meet their obligations to their clients.

    Speaking at a press conference to launch Ghana’s debt restructuring, the finance minister said the Governor of the Bank of Ghana will follow suit with details of the necessary assistance in due course.

    “We have also dialogued extensively with regulators across the financial sector, including the Securities and Exchange Commission (SEC), National Insurance Commission (NIC), and National Pensions Regulatory Authority (NPRA) to agree that regulatory forbearance will be provided to all entities whose financial position is adversely affected by virtue of participating in this exchange,” Ken Ofori-Atta explained.

  • Liquidity support: Government to establish Financial Stability Fund – Ofori-Atta

    Finance Minister, Ken Ofori-Atta has said government is setting up a Financial Stability Fund (FSF) with development partners as part of a domestic debt restructuring programme.

    According to him, the Fund will provide liquidity support to banks, pension funds, insurance companies, fund managers, and collective investment schemes to ensure that they are able to meet their obligations to their clients.

    Speaking at a press conference to launch Ghana’s debt restructuring programme on December 5, 2022, the Finance Minister said Governor of the Bank of Ghana will follow suit with details of the necessary assistance in due course.

    “We have also dialogued extensively with regulators across the Financial Sector including Securities and Exchange Commission (SEC), National Insurance Commission (NIC) and National Pensions Regulatory Authority (NPRA) to agree that regulatory forbearance will be provided to all entities whose financial position is adversely affected by virtue of participating in this exchange,” Ken Ofori-Atta explained.

    “This debt exchange provides an orderly way to put our economy back on track. These efforts will be complemented by fiscal measures to protect the neediest and most vulnerable in society,” he added.

    Government intends to undertake a Domestic Debt Exchange programme which it believes will restore confidence in the economy and address associated economic challenges.

  • $400 million insurance package for farmers coming – Ofori-Atta

    On Thursday, November 24, 2022, Finance Minister Ken Ofori-Atta informed parliament that the National Insurance Commission (NIC) is leading the establishment of agricultural insurance for farmers through the Ghana Agricultural Insurance Pool (GAIP).

    Commercial farmers and small-holder farmers can purchase traditional agriculture insurance and index-based weather insurance products from GAIP.

    According to Mr. Ofori-Atta, who presented the budget for 2023, qualified farmers will receive an estimated $400 million in agricultural insurance in 2023.

    The presentation of the budget in parliament is in pursuance of the Public Financial Management Act, 2016 (Act 921).

    This allows the Finance Minister to review the budget statement and economic policy of the government and supplementary estimates for the 2023 financial year.

  • Motor insurance tariffs to go up on December 1

    A review of motor insurance rates has been announced by the National Insurance Commission (NIC).

    On December 1, 2022, the new vehicle insurance rates will go into effect.

    In light of the nation’s economic difficulties, the Ghana Insurers’ Association was consulted throughout this evaluation, according to NIC.

    The statement below is dated November 23, 2022 and is signed by Michael K. Andoh, Deputy Commissioner for Insurance.

  • Protect insurance investment in economic restructuring – Government urged

    Ghanaian insurance brokers have urged the government to include measures protecting people’s investments in the insurance business in the 2023 Budget Statement and Economic Policy.

    The request comes as Ghana gets ready to launch a domestic economic plan under an IMF loan support program to boost macroeconomic confidence and decrease the suffering Ghanaians are now experiencing.

    According to information from the National Insurance Commission (NIC), the insurance industry by the end of 2020 had assets worth GHS8 billion and premiums at GHS4.2 billion, and it made up 2% of the country’s GDP (GDP).

    Mr Shaibu Ali, the President of the Insurance Brokers Association of Ghana (IBAG), who underscored the contribution of the insurance sector to economic growth and the support it gave to people in times of disasters, asked the Government to make sure that any restructuring did not affect the sector.

    He said this in an interview with the Ghana News Agency at a media soirée, which was to deepen the relationship between IBAG and the media fraternity and formed part of activities for this year’s Broker Awareness Month.

    Mr Ali said: “We appreciate that there’s a problem and that problem must be fixed heads on, but our investments must be protected by the Government.”

    He noted IBAG had started educating students in various Senior High Schools across the country to clarify the myth about insurance and said: “We need to demystify insurance, and we believe we can do this by getting closer to the younger ones still in school”.

    Mr Stephen Kwarteng Yeboah, the Vice President of IBAG, who emphasised the need to protect the investment in the insurance sector asked the Government to exclude the sector in any restructuring exercise.

    “Because we cannot pay for the cost of borrowing, if there is any restructuring, the insurance sector should be isolated, otherwise it’s going to be a disaster for the nation,” Mr Yeboah said.

    He added that: “When it comes to the insurance, it is very delicate and the day that people lose hope in the insurance company we are dead, and because we’re already having problems with trust in the public, insurance is our last hope when everything is gone.”

    Meanwhile, President Nana Addo Dankwa Akufo-Addo has assured that talks with the IMF would not lead to any investor losing money through a reduction in the face value of government bonds (haircut).

  • Regulatory framework underway to protect annuity products – NIC

    Kofi Andoh, the National Insurance Commission’s (NIC) deputy commissioner for insurance, has stated that the organization is putting up a regulatory framework to help protect both annuitants and annuity products.

    Insurance contracts known as annuities offer a fixed income stream for a person’s lifetime or a predetermined amount of time.
    An annuity can be bought with a lump sum or a series of payments, and it can start paying out right away or at a later date.
    Retirement funds are frequently raised through annuities.

    According to Mr. Andoh, the market is quite new, therefore, NIC together with its stakeholders are looking at ways to ensure that specific life insurance companies selling the products meet relevant requirements and competencies to shield customers.

    “As regulators, we are also working on a regulatory framework that will help us properly regulate this product to make sure that the annuitants are protected. It will help us to effectively do this by knowing what type of competencies an insurance company needs to have to sell annuity. This is a new market and we just need to make sure we put the appropriate measures in place to ensure that everybody is protected,” he said during the annuities campaign launch in Accra.

    As part of efforts to ensure the market remains strong and buoyant to serve the needs of customers, the NIC has also built the capacity of some life insurance companies – of which five have been given the opportunity to sell annuity products that have met requirements.

    As part of ensuring that the general public are sensitised on the benefits of annuity, the NIC has partnered with key stakeholders, with support from Deutsche Gesellschaft für Internationale Zusammenarbeit (GlZ), on behalf of the German government to roll-out a series of nationwide public awareness activities for the ‘Annuities Campaign’ – to create significant awareness about its importance as a great tool for financial independence during retirement.

    The campaign’s objectives will be achieved through the use of television, radio, social media and public engagement outreaches which are scheduled to run till end of the year, and are expected to reach some one million Ghanaians.

    Mr. Andoh, highlighting the importance of annuities said: “The benefits associated with annuities cannot be overemphasised: financial security, liquidity, guaranteed lifetime income supply, maintenance of lifestyle and ability to cope with unforeseen and unplanned expenses, to name a few”.

    Speaking at the media launch, Head of the Programme for Sustainable Economic Development at GIZ-Ghana, Detlev Axel Jahn, said GIZ is excited about the campaign and predicts it will bring a tremendous amount of value to the entire Ghanaian insurance industry. He said GIZ will continue to pledge its support and partnership to the insurance industry for projects and collective measures benefitting stakeholders.

  • Only 6% of imports insured in 2021 – Insurance Commission

    Dr. Justice Ofori, the commissioner of the National Insurance Commission (NIC), has revealed that the Insurance Act of 2006 does not cover 22.3 billion Ghana cedis ($23.7 billion) of all cargoes imported into Ghana (Act 724)

    This indicates that only 6% of the total value of imported products in 2021 was covered by insurance.

    He asserts that importers often break the law despite though Ghana’s rules require all commodities entering the nation, with the exception of items for personal effects, to be insured with a local insurer.

    “But this is yet to substantially impact our industry, simply because goods are usually imported on cost, insurance, and freight (CIF) instead of cost and freight as prescribed by section 222 of the Insurance Act, 2021 to the detriment of the local market,” he is quoted by graphiconline.com reports on October 18, 2022.

    Dr. Ofori added that the practice affects the insurance companies’ ability to generate the needed premium income necessary for financing long-term investments.

    He further stated that “But all that is about to change and this training could therefore not have come at a better time.”

    “With the support of the Marine Protocol, Marine and Aviation Insurance Database (MAID), and more importantly your expertise, the future looks promising,” he said during a training for Insurance brokers.

  • GIZ launches mobile insurance awareness campaign

    German development agency, GIZ, in partnership with the National Insurance Commission (NIC) on Monday, August 31 launched a mobile insurance awareness campaign dubbed #SakeOfMorrow.

    The campaign is to tackle the knowledge gap, increase insurance awareness and literacy to enable underserved consumers to access simple and affordable mobile-delivered insurance and health services.

    Speaking on the rationale behind the campaign, Technical Advisor of GIZ Gabriel K. Kwame indicated that the very essence of doing insurance is to safeguard and cushion people against any unforeseen circumstances.

    He noted that the Mobile Delivered Insurance Awareness Campaign, #SakeOfMorrow, is a campaign that seeks to draw attention to the need to take steps to secure tomorrow.

    “There is a major awareness gap in the insurance industry. In our part of the world, several lives are lost through untimely hospitalization and minor accidents. We believe driving awareness for the convenient and reliable Mobile Insurance will enable Ghanaians to take advantage of its several benefits,” Mr. Kwame added.

    Mobile Delivered Insurance has become very important as it offers an affordable and more convenient way of doing insurance that can be trusted to secure peoples future using their mobile phone.

    Source: 3 News

  • National Insurance Commission moves to root out fake motor insurance

    The National Insurance Commission (NIC), has procured about thousand hand-held mobile devices to help the police to check the authenticity of motor insurance stickers of motorists, Commissioner, Justice Yaw Ofori, has said.

    Known as Gota phones, he said, the devices were currently being configured with the necessary security features to aid the police in detecting the validity of motor insurance policies.

    The Commissioner of Insurance, who stated this in a press statement, said the move formed part of measures to enforce compliance with the Motor Insurance Database (MID) and root out fake insurance policies from the system.

    The MID, introduced by NIC in January this year, is an electronic database of recording and checking vehicle insurance stickers to protect the interest of policy holders and the general public.

    Mr Ofori explained that the MID was to check the authenticity of vehicular insurance and root out fake insurance stickers from the system to protect motorists, passengers and pedestrians, adding it was to protect motorists from buying fake insurance.

    “The benefits of the MID include the authentication of the insurance of vehicles plying the roads, thereby securing the protection of policyholders, motorists, road users as well as other third parties who may suffer from the negligence of motorists,” he said.

    Mr Ofori indicated that so far about 554, 000 motor vehicle insurance policies had been captured on the MID.

    He said all the old policies issued prior to January 2020 had been uploaded onto the database, and new electronic stickers would be issued upon renewal.

    Mr Ofori explained that the NIC had completed a nationwide “Training of Trainers” programme on the MID for some 400 personnel of the MTTD.

    The Commissioner hinted that NIC, together with the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service, would soon commence a nationwide exercise to enforce the Motor Insurance Database (MID) demands.

    The joint exercise, he said, was meant to clamp down on dealers and patrons of fake motor insurance, in a bid to reduce the number of uninsured vehicles in the country.

    He explained that some unscrupulous individuals were dealing in fake insurance stickers and selling such insurance stickers to unsuspecting motorists.

    This practice, Mr Ofori said, put the lives of commuters and pedestrians at risk because in the event of an accident, such individuals could not access insurance because the vehicle had fake insurance.

    Source: Ghanaian Times

  • Dont insure okada, tricycles; their operations are illegal Insurance companies warned

    The National Insurance Commission (NIC) has directed insurance companies to stop issuing insurance policies for motorcycles and tricycles used for commercial purposes.

    “The Commission hereby directs all insurance companies to desist from issuing insurance policies to cover motorcycles and tricycles used for all commercial purposes, except courier and delivery services,” the Commission noted in a statement.

    According to the Insurance Commission, usage of motorcycles and tricycles to carry fare-paying passengers are illegal.

    “We wish to bring your attention that regulation 128 of the Road Traffic Regulations, 2012 (Legislative Instrument 2180) prohibits the usage of motorcycles and tricycles to carry fare-paying passengers and also prohibits the DVLA from licensing motorcycles and tricycles to be used to carry fare-paying passengers.”

    The Commission further added that “henceforth, accident victims who were fare-paying passengers on motorcycles or tricycles will not qualify for compensation from the Motor Compensation Fund.

    Below is the full statement from the NIC

     

    Source: citinewsroom 

  • We will clamp down on all fake insurance dealers NIC assures

    The regulator for insurance in Ghana, the National Insurance Commission (NIC) has assured it will continue to clamp down on persons dealing in fake insurance stickers.

    This follows the arrest of a member of a suspected cartel dealing in fake insurance stickers upon a tip-off near the Aboabo DVLA Office in the Ashanti Region after the police in the area carried out a joint operation with the NIC on Tuesday, May 19, 2020.

    Commissioner of Insurance, Justice Ofori speaking in an interview with GhanaWeb lamented the situation in the Ashanti Region as worrying but was confident that the introduction of the Motor Insurance Database (MID) and enforcement by the Police MTTD, will largely curb the menace in order to protect innocent third parties and policyholders.

    “This is an indication that the Commission is not resting, despite the introduction of the Motor Insurance database. We know that there are bad guys out there and whatever you do they will try to undermine it. The Kumasi operation was successful, and we are ready to embark on a similar operation anywhere in the country,” Mr. Ofori stated.

    “We are working so much with the MTTD and we believe that with such a collaboration it will take us far so my advice to the bad guys is that they should stay out of this business. We are here to protect the insured and the general public and we would do whatever it takes to get this done,” he assured.

    He, however, stated the commission has in the last quarter of 2019 published the names of regulated insurance entities in good standing adding, motorists should only deal with those registered companies.

    Additionally, the NIC this year has caused the arrests of a number of persons issuing fake motor insurance stickers to motorists.

    These include the arrest of the Insurance Agent, 72-year old Nana Kodua Marfoh for submitting fake documents to the Kumasi Area Office of the National Insurance Commission (NIC).

    Two other Agents of Millenium Insurance Company Limited have also been arrested for possessing fake ALLIANZ INSURANCE sticker booklets also at the premises of the same Kumasi DVLA Office.

    Motor Insurance Database

    On January 1, the National Insurance Commission began the implementation of the Motor Insurance Database (MID) policy to clamp down on the menace of vehicles with fake motor insurance stickers plying on roads.

    The Commission issued a directive giving all insurance companies up to January 20, 2020 to migrate all their information to the new Motor Insurance Database system.

    Deputy Commissioner at the NIC recently disclosed it has electronically issued over 272,000 stickers following the implementation of the MID policy.

    Source: www.ghanaweb.com

  • Old Mutual confident of meeting NICs new minimum capital requirement

    Insurance firm, Old Mutual Ghana says it is optimistic about meeting the new minimum capital requirement set out by the regulator for insurance, the National Insurance Commission (NIC).

    This is according to the Chief Financial Officer of Old Mutual Ghana, Clara Amarteifio-Taylor who says her outfit has put in place the necessary procedures to meet the June 2021 deadline for insurance firms.

    The NIC in 2019 increased the capital for insurance companies from GH¢15 million to GH¢50 million and that of Reinsurance companies from GH¢40 million to GH¢125 million. That for Insurance Broking companies was also been increased from GH¢300,000 to GH¢500,000.

    The minimum capital requirement for reinsurance broking companies was however maintained at GH¢1 million.

    Consequently, like the banking sector, there have been concerns the increase in minimum capital requirement could result in the subsequent collapse of some insurance firms.

    But some industry experts have indicated that the increase will rather help in creating a robust and resilient insurance sector.

    Last week, Bloomberg reported that Old Mutual registered a 5 percent drop in earnings for 2019 with the company indicating that its operations were weighed down by a stuttering South African economy.

    Source: www.ghanaweb.com