The Chief Executive Officer of CDH Insurance Company Limited, Mr Larry Jiagge, has called on players in the insurance industry to collaborate to check the negative sides of premium competition in the insurance sector. Mr Jiagge stated that competition for premium income could force some companies to underwrite at unrealistic prices and that could lead to underwriting losses in the industry as the economy deepened. "The industry will continue to grow as the performance is dependent on the growth of the economy. But we will have to work together to address some of the pitfalls in the industry, such as premium competition," he stated. Mr Jiagge, whose company is on the verge of implementing a five-year strategic business plan next year, told the Daily Graphic that competition in the insurance industry was set to deepen as the country witnessed increased economic activities in the productive sector, coupled with the new Insurance Act that sought to put the industry on a sound footing. Briefing the Daily Graphic on the new strategy which was drafted with the help of the Ghana Institute of Management and Public Administration (GIMPA), the CEO said it was aimed at expanding the company and sustaining its growth above the industry's average. The plan would also emphasise the attraction of the best crop of professionals, development of human resource and maintaining a low staff turn over rate. Mr Jiagge said CDH Insurance which ceased to be a subsidiary of the CDH Group following a change in the shareholding structure would also embark on capacity building exercises for its agents. The company has in the last two years expanded its area of operation, opening offices in Accra, Tema, Kumasi, Cape Coast and Tamale and relocated its Takoradi office as well as many other agencies across the country. He said the CDH would put up an office on the Spintex Road. "The company was able to improve its working relationship with broking firms in the market and attracted some of the big names in the industry and they made significant contributions to our premium income," Mr Jiagge stated. The insurance sector is seen as one of the fastest growing in the industry with 136 per cent growth in 2006 and about 80 per cent growth as of November 2007. As of the end of November the company's premium income was GH¢3.96 million (¢39.58 million) as against GH¢2.59 million (¢25.97 billion) as of the end of 2006. It paid claims amounting to GH¢253,000 (¢2.5 billion) as compared to GH¢163,000 (¢1.63 billion) as of September 2006. According to the CEO, the company was not daunted by the huge claims but saw them as an obligation 'which it must discharge quickly to satisfy its customers. However, the insurance company operated under some statutory and strategic challenges, which included re-locating its head office to a new location behind the Holy Spirit Cathedral in Accra to emphasise the new image of the company. The re-denomination exercise also meant procuring new software, changing systems and training people. The company was also confronted with the task of separating its life arm from the general business as prescribed by the Insurance Act 2006, Act 724 which exerted a lot of technical and financial commitments on the company. The CEO explained that the company was able to comply with the requirements and met the National Insurance Commission's (NIC's) deadline for the conversion, saying "we hope to get the licence by the end of the year." Source: Daily Graphic