The National Insurance Commission (NIC), in collaboration with the Actuarial Society of Ghana (ASG), is set to unveil an assured life mortality table by the first quarter of 2025.
This and other initiatives the Acting Commissioner of Insurance, Michael Kofi Andoh has revealed are crucial steps in improving the accuracy of life insurance assessments in the country and enhancing the actuarial profession.
The table, when finalised, will provide critical data for accurate pricing, reserving, and risk management in life insurance.
Other ongoing projects include the development of a risk-based capital (RBC) framework for the Ghanaian insurance industry, scheduled for implementation in 2026.
The NIC has finalised a policy paper and is engaging stakeholders, including the ASG, in shaping the framework.
Additionally, the NIC has facilitated the implementation of International Financial Reporting Standard (IFRS) 17, which emphasises the use of actuarial tools in financial reporting.
The first set of IFRS 17-compliant financial reports has been submitted and is under review to identify areas for improvement.
“Under the UNDP-Milliman Global Actuarial Initiative (GAIN), the NIC is working with ASG to develop actuarial capacity for non-life insurance companies. This is important in fulfilling our mandate, under Section 77 of the Insurance Act, 2021 (Act 1061).
“As of today, a total of twenty- eight (28) actuarial staff, representing 17 non-life insurers are currently undergoing comprehensive non-life actuarial training. Additionally, the Non-Life Actuarial Operations Manual has been formulated to aid these companies in effectively performing the actuarial functions.
“Again, under the GAIN project, the NIC is working with the ASG and other key stakeholders to complete work on the development of an Assured Life Mortality Table, which is currently about 80% complete, and we are looking forward to unveiling this in the first quarter of 2025. There is also an initiative to connect experienced Actuaries with actuarial students in Ghana who are willing to be coached and mentored,” he stated.
He was speaking at the 2024 ASG Connect Conference in Accra, Mr. Andoh, where he lauded the ASG’s efforts in promoting professionalism and ethical standards.
He emphasised the pivotal role of actuaries in Ghana’s financial and insurance sectors and highlighted ongoing collaborations between the NIC and ASG to advance the profession.
Innovation
Mr. Andoh stressed the importance of fostering innovation in the insurance industry while maintaining regulatory integrity.
He highlighted the NIC’s establishment of an Innovation Unit and regulatory sandbox to encourage technological advancements and inclusive insurance solutions. These initiatives aim to address emerging challenges such as climate risks and environmental, social, and governance (ESG) compliance.
“While innovation is equitable and advantageous for all stakeholders, it is incumbent upon us as regulators to ensure market integrity, stability, and fairness,” Mr. Andoh remarked.
He urged the ASG to prioritise the setting and enforcement of rigorous actuarial standards to uphold ethics and accountability in the profession.
Enhancing capacity
To address the shortage of actuaries in Ghana, the ASG, in partnership with the United Nations Development Programme (UNDP) and Milliman, has introduced several capacity-building initiatives.
These include mentorship programmes that connect experienced actuaries with students and graduates, enabling a smooth transition into the industry.
ASG President Neil Tagoe revealed that the mentorship programme includes local and international mentors who guide young professionals through the demands of the actuarial field.
“Our goal is to produce locally trained actuaries who can take over leadership in Ghana’s financial services sector,” he said.
The ASG is also implementing a specialised national service placement program that identifies top actuarial graduates and places them in strategic industry positions.
Over 35 students have benefited from this initiative, gaining hands-on experience and professional development opportunities.
Induction of New ASG Executives
The conference also marked the induction of new ASG executives, with Kofi Ntim of MiLife Insurance assuming the role of President.
Mr. Kakra Duffuor-Nyarko of StarLife was inducted as Vice President, Magnus Owusu-Agyemang of the National Health Insurance Authority (NHIA) as Financial Secretary, and Harris Yemoh of SSNIT as Secretary.
The newly inducted executives pledged to continue the ASG’s legacy of promoting actuarial excellence and collaboration with key stakeholders.
Concluding his address, Mr. Andoh commended the ASG for its dedication to professionalism and capacity building.
He expressed confidence that the insights shared at the conference would shape the future of Ghana’s actuarial profession and contribute to the growth of the insurance sector.
“As we celebrate novel business models, let us remain steadfast in upholding the principles of ethics, integrity, and accountability,” he said.
The 2024 ASG Connect Conference, themed “Connect the Future – Innovation, Regulation, and Professionalism,” underscored the critical role of actuaries in driving growth and stability in Ghana’s financial landscape.
