The National Insurance Commission (NIC) has given a firm assurance that Bancassurance policyholders’ funds with collapsed banks are safe.

The Bancassurance concept which allows banks to sell insurance products and services to their clients has been met with some challenges due to the recent banking sector cleanup. 

The situation has left some policyholders sceptical about whether or not their premiums are still safe.

But speaking to JoyBusiness, the Commissioner of Insurance Justice Yaw Ofori says, the policyholders can request for payments at the respective insurance companies in the event of a loss.

He said, “If the insurance company is facing an enforcement action than that company cannot be in any bancassurance agreement.”

“Unibank is just selling the product for an insurance company; Unibank could go under but the insurance company still exists because they would take premiums to the insurance companies to underwrite and issue the policy so if there is a claim you go to the insurance company.”

Mr Ofori spoke at the Chartered Insurance Institute Ghana (CIIG) Presidential Cocktail in Accra.

The annual event brings together insurance professionals to discuss industry-related issues and how best they can improve their operations in the country.

President of the CIIG, Rev. Asante Marfo-Ahenkorah urged insurance professionals to take a cue from the banking sector cleanup.

“The recent happenings in our financial sector should be a wakeup call for us all and complacency is not an option for us as an industry and with the rate of change occurring in the industry and all spheres of life, we should take our continuous professional development seriously.” Rev. Marfo-Ahenkorah said.

The CIIG President’s cocktail event featured the inauguration of an awards committee for the CIIG to recognize the performance of professionals in the industry. Former Commissioner of Insurance, Lydia Lariba Bawa is Chairman of the committee.

Meanwhile, the Institute says it is doing more to increase its numbers to about 870 this year from current 571.