Minister for Finance Dr. Cassiel Ato Forson says the government is positioning Ghana to become an insurance hub in the subregion as part of strategies to strengthen financial stability.
As a result, the government is pursuing deliberate reforms to deepen penetration, strengthen consumer confidence and position insurance as a driver of inclusive growth.
In a speech read on his behalf by Louis Kwame Amo, the Chief Economic Officer and Director of the Financial Sector Division at the Ministry of Finance during the annual Education Conference and Exhibition of the Insurance Brokers Association of Ghana, the Minister of Finance mentioned that a 10-year Master Plan will be unveiled to enhance a sustainable insurance sector.
He said the blueprint for this reform aims to tackle low penetration, pricing inefficiencies and fragmented frameworks, while positioning Ghana as a regional insurance hub.
“Over the next two years, the Insurance Sector Strengthening Strategy will drive digital transformation, improve regulation and attract international investments,” Ato Forson said.
He called on the Insurance Brokers Association of Ghana to collaborate and cooperate with the government on making the strategy effective.
“Delays in claims settlement, low literacy and unhealthy practices such as premium undercutting, capacity gaps in risk management and technology adoption also weaken public confidence in the insurance industry,” Ato Forson said.
He urged the brokers to rebuild trust through prompt and fair claims settlement, adherence to ethical standards and stronger consumer engagement.
President of the Insurance Brokers Association of Ghana, Mr. Stephen Kwarteng Yeboah, acknowledged the level of corruption that has permeated the insurance industry and pledged to work with his members to clean the system.
He said the impact is dire and threatens the very survival of the industry if not checked.
Mr. Kwame Amo indicated that the theme for the conference, ‘Building Resilience in a Socio-Political Environment,’ is timely.
He noted that the conference will discuss strategies and adopt best practices in resolving all the challenges and setbacks enumerated by the Minister.
He also commended the Minister of Finance for his cooperation so far, adding that brokers will adhere to the laws governing the industry.
However, he indicated that the introduction of VAT on non-life insurance premium appears to be harsh to the industry and consumers.
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Source: www.myjoyonline.com