SIC Insurance Company Limited, the nation’s second-largest premium income earner and Ghana Union Assurance Life have been adjudged top-most cedants to the Ghana Reinsurance Company (Ghana Re) at the 12th edition of their Annual Awards last week Friday. It was held under the theme: “The African Continental Free Trade Area: The Agreement and its impact on the Insurance Industry”.
The contest, this year was in five categories, namely Broker Business, Life Business, Special Awards, General Business and Special Awards Life Business. KEK Reinsurance Brokers clinched the title in the Broker category. While in the Special Awards Life category was sub-divided into Prompt Premium Payment which was won by Saham Life, contribution to the growth of Ghana Re in the year under review was picked by Metropolitan Life Insurance Company. Vanguard Life won in the Prudent Underwriting category, while loyalty to the business partnership with Ghana Re went to first insurance company.
In the General Business category, Saham Insurance Company was first runner-up while Provident Insurance Company. The Special Awards in this category was clinched by Allianz Insurance Company Limited which toped in the Prompt Premium Payment category while Enterprise Insurance Company won in the contribution to the growth of Ghana Re in that year with Donewell Insurance Company Limited coming third in Prudent Underwriting and Loyalty Insurance Company won for being loyal to the business partnership with Ghana Re.
Commenting on the theme: “The African Continental Free Trade Area: The Agreement and its impact on the Insurance Industry”. George Mensah, Managing Director said the theme has been selected to generate a conversation in response as an industry. According to him, the main objective of AfCTA is to create a single African Market which covers trade in goods and services, Dispute Settlement, Investment, Intellectual Property Rights, E-Commerce and Competition Policy.
It will also boost intra-Africa trade in making Africa a single market of about 1.2billion people and accumulative GDP of over USD 3.4trillion in addition to enhancing competitiveness at the industry and enterprise level by exploiting opportunities for scaling production, continental market access and better reallocation of resources.
More importantly, AfCTA is expected to resolve challenges of multiple and overlapping membership and expedite integration process in addition to expanding intra-African trade through better harmonization and coordination of trade liberalization and facilitation across regional economic communities and across Africa.
He explained that, AfCTA is expected to create to world’s second largest trade agreement in history following that of the World Trade Organisation which the Economic Commission of Africa estimates the implementation of the agreement could increase Intra-African trade by 52% by 2022 (when compared with trade levels in 2010) and double the share of Intra-African trade currently around 20% of Africans exports by the start of the next decade.
“Additionally, manufacturing exports are projected to increase 62% by 2035 with a value of about USD 2.5trillion and expected increase in wages, job opportunities and investment in technology, many are hopeful this will bring about a drop in Africa’s poverty figure to about 10.9% form 57% by 2035 and increase disposable income”.
“More importantly, the insurance industry has a vital role to play in the successful implementation of AFCFTA and we are encouraged to raise to be challenge in contribution to ensuring a better Africa for all. Notable is the development of relevant insurance product that can mitigate the political economic risk as well as serve as a major key to giving African businesses the confidence to take advantage of the numerous opportunities under AFCFTA,” George Mensah pointed out.