Tuesday, 23 July

NIC to shift more towards the inclusive insurance market

Business
Stakeholders in a group photograph at the UNDP sponsored programme in the Estern Region

MGA Consulting, the lead consultant for the United Nations Development Programme's Insurance and Risk Finance Facility (UNDP's IRFF) project, in partnership with the National Insurance Commission (NIC), has initiated a critical workshop with a focus on Legal and Regulatory Review and combining it with Capacity Building for relevant stakeholders.

The workshop aims to identify gaps and opportunities in the emerging new developments of inclusive insurance regulatory strategy and roadmaps to shape the future of insurance in Ghana to enable the industry to reach out to underserved populations across the country.

In his welcome address, Michael Kofi Andoh, Commissioner of the National Insurance Commission (NIC), affirmed that inclusive insurance represents the next phase for the insurance market

He noted that many countries have developed frameworks urging stakeholders such as the National Health Insurance Authority and the National Insurance and Pension Regulatory Authority (NPRA) to collaborate in making inclusive insurance a reality.

Mr.  Andoh argued that inclusive insurance would benefit all partners involved, stressing the importance of such initiatives for the sector's growth and sustainability.

This workshop marks a significant step towards enhancing Ghana's insurance landscape, ensuring it becomes more inclusive and capable of addressing the diverse needs of its population, he stressed.

Mr. Michael Abbiw of MGA Consulting emphasized the need for a transition from traditional insurance markets which have been in existence since time immemorial and only served a few of the market with insurance products to gear more towards inclusive insurance for the benefit of many Ghanaians, even though the latter is not yet commercially viable.

He asserted that implementing progressive inclusive insurance products and reach in Ghana is feasible and crucial for the sector's evolution of emerging risks and opportunities.

Mr. Abbiw highlighted agricultural insurance as essential and very crucial for achieving inclusive insurance under the new Insurance Act 1061.

He suggested that, just as there are commercial, universal, and rural banks, the inclusive insurance market can be tailored with different kinds of licenses to encourage innovators to enter this space.

He noted that specific banks target segments of the economy based on geographical location, a model that could be applied to inclusive insurance.

He pointed out that the inclusive insurance market remains largely untapped in Ghana. Historically, the cocoa industry has significantly contributed to the insurance sector's economy, a trend that shifted with the advent of the oil and gas industry.

Despite the potential for expansion, Mr. Abbiw expressed concern that insurance coverage has not adequately extended to certain economic sectors.

Source: Classfmonline.com/Cecil Mensah