Insurance companies urged to pay claims promptly
The Commissioner of Insurance, Ms Lydia Bawa, has advised life insurance companies to take the necessary steps to ensure that the claims of policy holders are paid promptly.
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She has also cautioned life insurance companies to guard against fraudulent claims as they could lead to their collapse.
Ms Bawa made these remarks at a forum in Accra to educate stakeholders in the insurance industry on the management of life claims.
The forum was organised by the Ghana Reinsurance Company Limited and Munich Reinsurance Company Limited of South Africa.
Life insurance, Ms Bawa stated, protected individuals and institutions from economic losses.
“Insurance provides protection against some form of economic loss, thus companies provide, first and foremost, security to the buyers of their products,” she said.
The insurance industry in Ghana, she said, continued to experience steady growth at an annual average rate of about 32 per cent income over the past five years.
Ms Bawa said Ghana, as of December 31, 2013, had 42 licensed insurance companies with a combined estimated penetration rate of 1.5 per cent.
“The total market premium recorded by the Ghana Insurance Market for the year 2013 amounted to GH¢1.051 billion,” she said.
Insurance law
According to Ms Bawa, the enactment and implementation of the Insurance Law, 2006, Act 724, has resulted in remarkable changes in the structure, competition, efficiency and the growth of the insurance industry.
To sustain the life insurance business in Ghana, Ms Bawa said the various stakeholders in the insurance industry must recognise the need for product innovation, particularly in the areas of savings and retirement solutions.
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She added that stakeholders must ensure that pricing strategies reflected current market realities.
Capacity building
The Managing Director of Ghana Reinsurance Company Limited, Mr Gustav Siale, said the training would enhance the capacity of insurance practitioners.
“The need for capacity building in Life insurance cannot be overemphasised considering the potential for growth in the industry,” he said.
He expressed the hope that the training would improve the handling of claims to improve upon the image of the insurance business in Ghana and, thus, help in the increase of the uptake of life products.