Amissah Arthur Vice President
The Vice President, Kwesi Bekoe Amissah-Arthur has advised insurance companies across the continent to develop strategies and policies that would make the industry attractive to Africans.
According to him, the critical role the sector plays in modern capital investment is important to the development of the socio-economic wellbeing of the African citizenry.
The Vice President made the appeal in a speech read on his behalf by the Finance Minister Mr. Seth Terkper at the 37th Annual General Meeting of Africa Reinsurance Corporation in Accra.
Mr. Amissah-Arthur tasked members of the corporation to reflect on challenges that face the industry and propose appropriate strategies to strengthen the insurance industry in Africa.
He pointed out that, unconventional monetary policies that are transferred into developing economies most often become a disincentive and hinders the industry from exploring indigenous policies.
He, however, stated that the low insurance penetration and other related constraints in the insurance industry provide a considerable opportunities for developing the insurance sector on the continent.
“We need to develop both general and life insurance products that can promote our transformational agenda”, he said.
He stated that, there is a high frequency of claim recurrence due to aging infrastructure, relying largely on imports and on foreign currency for replacement.
On her part, the Commissioner of the National Insurers Association, Ms. Lydia Lariba Bawa said “the insurance industry in Ghana and most parts of the Sub Saharan suffer from very low retentions that lead to excessive premium flights through overseas reinsurance”.
She stated that the challenge is due to lack of capacity on the part of insurance companies in the sub-region.
She said, the national insurance commission in a response to this has implemented a number of reforms to improve the situation.
By PORTIA GOH
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