We must preserve competition, merit-based procurement system in insurance industry – GIA

The Ghana Insurers Association (GIA) has underscored the need to preserve competition, transparency and merit-based procurement system in the insurance industry to promote fairness.

The GIA made the appeal after its engagement with the State Interests and Governance Authority (SIGA) on a communication for state enterprises to do business with only SIC Insurance PLC and SIC Life Insurance Ltd. According to SIGA, its communication was not intended to compel all state enterprises to solely deal with SIC.

 “SIGA clarified that the intent was to promote inter-trading within the state enterprise ecosystem in line with sound commercial and procurement principles and not to impose exclusivity. The Authority further emphasised that this initiative “is not a call for blind loyalty, but rather a strategic business decision’’, the statement released by GIA said.

“GIA acknowledges this clarification and underscores that such initiatives must be implemented in a manner that preserves competition, transparency, and merit-based procurement, consistent with regulatory requirements and industry best practice”, it added.

The GIA noted that SIC Insurance PLC and SIC Life Insurance Ltd are valued members of the association alongside all private insurers.

“In line with its mandate, GIA remains committed to representing and safeguarding the interests of all its members without distinctionwhile promoting a fair and competitive market environment”.

 In its recommendation the GIA emphasised that:

1. The movement of insurance business among companies is a normal feature of a competitive market but must be conducted in an orderly, transparent, and lawful manner.
2. Redistribution of existing business does not increase insurance penetration; the industry must focus on expanding coverage and deepening inclusion.
3. GIA will continue to enforce its self-regulatory framework to promote fair practices, working with the National Insurance Commission where necessary.
4. The public is encouraged to engage with all licensed insurers in accordance with established procurement and regulatory processes.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.