President Mills tasks insurance industry to design products for the informal sector

President John Evans Atta Mills has called on insurance companies to design insurance policies that will cater for the large informal to protect it from unforeseen difficulties.

He noted that the right insurance can keep a low-income family from falling below the poverty line when faced with difficulty, unfortunately however, even most common forms of insurance are scarce among the poor.

“In line with this, Government is supporting and urging insurance companies to design products which are simple, easy to understand, easily accessible, valuable, efficient and affordable to bring on board the large portions of our population who are still unaware of the inherent benefits of the insurance industry”.

President Atta Mills said this in a speech read on his behalf by Hon. Fifi Kwetey, Deputy Minister of Finance and Economic Planning at the commissioning of the Ghana Life Insurance Company Limited ultra modern office building.

He urged insurance companies to train their staff to face the challenges of the insurance market especially now that the burden of understanding and managing details of financial products and services is complex for most Ghanaians.

President Mills noted that the insurance companies contribution to the economy especially, the life insurance industry which has been a vehicle for mobilizing much needed funds for long-term investment and national development.

“The insurance industry also continues to provide employment opportunities in addition to its traditional role risk management. All these have provided financial security to businesses and families”.

He commended Ghana Life Insurance for their achievements and urged them to continue to set standards in the industry adding that government on its part will continue to promote convergence, integration and development of Ghana’s financial sector to become very well structured and developed.

In an address, the Commissioner of Insurance, Josephine J Amoah in a speech read for her said though Life assurance industry in Ghana has seen tremendous growth due to improvements in the country’s macro economy, it is still far from realizing its potential in terms of facilitating wealth creation and contributing to the nation’s GDP.

She urged insurance companies to come out with appropriate means of collecting premiums from policy holders since the current mode has high lapse rate to the detriment of policy holders.

“Insurance policies should generally help policy holders to reduce poverty or create wealth. This would help policy holders to appreciate the value of insurance and develop confidence and trust in insurance companies in particular and the insurance industry as a whole” Ms Amoah challenged Life insurance companies to liaise effectively with the banks and the Controller and Accountant General’s Department to find a solution to this problem.

She commended Ghana Life for their state of the art building saying insurance business aught to be conducted in a congenial environment in a transparent, fair and cost effective manner.

The Chairman of Ghana Life Insurance Company, Eng Cyril O. Ajagu, on his part assured all that the company would play by the rules, laws and regulations of Ghana and best international practice.

“We on the board will not condone any wrong doing we stand for good corporate governance and believe in honest and truthful dealings. We shall also play it fair in the life market and help the life offices association to bring life insurance to the doorsteps of the people of this country”

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