Mr. Stephen Kwame Oduro, the Managing Director of SIC Insurance – Ghana’s leading insurance brand with over 57 years of experience, has hinted that plans are in place to meet the timelines set by the National Insurance Commission (NIC) on the proposed new Minimum Capital Requirement.
He said the company has looked at all the positions available and has drawn up its comprehensive proposal, which will be submitted to the Commission soon. “We are expectant that our proposal will be approved, and we will work assiduously to meet all timelines set by the NIC,” he added.
Mr. Stephen Kwame Oduro was speaking to media at the Company’s 2018 Annual General Meeting held in Accra.
The NIC, as part of its inclusion in the robust development of the financial sector, has initiated measures for the recapitalisation of both Life and Non-Life Insurance entities. The Insurance regulator is expecting all insurance companies to raise their Minimum Capital Requirement from the current position of GH¢15million to GH¢50million by 30th June 2021.
Mr. Oduro observed that time has come to push the insurance penetrative discussion forward through partnership among key industry players, and also accentuated the importance of deepening such partnerships for the sustained growth of players in the industry.
He said per the insurance industry structure in Ghana, insurers and reinsurers, insurance brokers and agents are key partners which any insurance company worth its salt will align itself with to remain relevant.
He therefore called for collaborative efforts among all industry players to build efficient distribution channels, continue with mass consumer education about insurance products and services, develop affordable offerings and find ways to manage the collection of insurance premiums in a way that consumers will sign on to with ease.
“These initiatives among others are some of the sure ways of pushing the penetration agenda forward and changing the narrative,” he said.
The Managing Director was optimistic that though there are challenges facing the industry, the growth potential is great.
The company recorded GH¢177,986,624 as gross premium revenue in 2018, representing a year-on-year growth of 10% over revenues for 2017 and a market share of 14%. A total of GH¢35,883,964 was paid as claims in 2018.