Commissioner of the National Insurance Commission (NIC) Justice Yaw Ofori says the Covid-19 outbreak has affected the insurance industry both positively and negatively.
The positives include the design of products to meet new challenges, investment in research and ICT development, according to him.
He explained that the negative aspect refer to a reduction in new businesses and renewals because of the face-to-face nature of the insurance markets.
Mr Ofori stated that “to build a resilient industry, therefore, depends on both parties moving together.”
Speaking at the Ghana Reinsurance Company Limited’s 11th Cedants Awards for insurance companies he noted ‘these times call tenacity, skill, innovation and also demand the importance of business continuity, planning and stress testing.
The NIC boss, speaking on the theme ‘Building a resilient industry in times of covid’, said it “requires planning for our changing environment and by doing this our industry will stand its grounds and will come out stronger and better.”
He indicated that the Commission remains concerned about overseas transfers of reinsurance premiums adding that over $40 million left the shores of Ghana in 2019 leaving a negative impact on the economy.
He, therefore, entreated “all insurers to extort all local capacity before any recalls for overseas reinsurance because this will help reduce premium flight and harness the needed resource for the country.”
Managing Director of Ghana Reinsurance Company Limited, George Mensah also said the dynamics of this pandemic make it important for insurers to be prepared to review their business strategy with the objective of adequately preparing for the operational disruption brought by Covid-19.
Metropolitan Life Insurance Company, Ghana Union Insurance Company and other insurance companies were recognized at the 11th Cedants Awards for insurance companies.