TOP GUIDE: Tell us about the insurance industry in Ghana.
Dr. Justice Yaw Ofori: The National Insurance Commission was established under the Insurance Law 1989 PNDC Law 227 and currently operates under the Insurance Act 2021 (Act 1061). It was set up to ensure the effective administration, supervision, regulation and control of the business of insurance in Ghana. The Commission’s mandate includes licensing of entities, setting of standards and facilitating the setting of codes for insurance practitioners. The Commission also approves rates of insurance premiums, and shows financial soundness of insurance entities, resolves the grievances of policyholders and interested third parties, and also acts as a catalyst for the development, growth and prosperity of Ghana’s insurance industry to meet the changing needs of our time. The insurance industry has been growing at an average of 20 per cent per annum over the past couple of years. With extensive awareness creation for the need for insurance, the uptake of insurance currently stands at 44.6 per cent of Ghana’s working population as of 31st December, 2020. In Ghana, there are 27 non-life insurance, 20 life insurance, three reinsurance companies and over 100 insurance brokers. The NIC, among other things, is committed to ensuring that insurance companies operating in the Ghanaian market survive, are financially sound and honour their obligations towards policyholders.
TOP GUIDE: What are NIC’s vision and mission, and what are the key medium to long-term objectives?
Dr. Justice Yaw Ofori: Vision Our vision is “to be a model insurance services regulator in Africa” and the mission is “to be an effective custodian of the public interest ensuring financial soundness of insurance companies and prompt attention to grievances of policyholders and interested third parties; and to act as catalyst for the development, robust growth and prosperity of Ghana’s insurance industry”. TG: Is there room for foreign investors in the sector?
Most foreign companies that invest in Ghana look for experienced insurance companies to mitigate risks for their services and employees. Ghana is not only the best place for doing business in West Africa but it is also the third fastest growing economy in the world according to the IMF. Ghana worked in the past decades to achieve these remarkable successes through strategic planning by past and present leaderships of the country, and the fact that Ghanaians see opportunities in every challenge.
TOP GUIDE: What is the Commissioner’s message to them?
Dr. Justice Yaw Ofori: Ghanaians are creative, innovative, empowered and resilient. It is easy to see that Ghanaians love and believe in their country. Indeed the ability to withstand pressures that some other countries are unable to withstand makes us proud as Ghanaians. The passion in entrepreneurial skills and the desire and drive to make today better than yesterday is a continuous principle guiding the Ghanaian mentality. Ghana’s future lies in digitisation and digitalisation of business operations and the need to uphold these for business continuity sits well with my vision for the insurance industry in Ghana.