'Prop Up New Insurance Bills'

Stakeholders in the insurance industry have been called upon to make inputs to any new legislation billed for introduction henceforth to promote the growth of the industry.

This follows the failure of the proposed new insurance regulatory legislation to materialize into law.

George Otoo, Group Chief Executive Officer of Enterprise Group Limited made the appeal in Accra while reviewing the performance of his outfit during its recent annual general meeting.

The proposed legislation comprises a new Solvency Framework, a new Insurance Act, Insurance Regulations and Insurance Code, corporate governance and risk management codes all of which failed to come into fruition.

According to Mr. Otoo, discipline remained an issue in the industry, with pricing, particularly in the General Insurance business playing a key role in business acquisition as opposed to real innovation and service quality.

He also said 'the new NIC rules around the granting of credit and management of debtors in the industry appeared slow in application even though the industry remained fiercely competitive.'

Commenting on the group's strategy, Mr. Otoo noted that it attained prominent achievements in both its net revenue and profits, which recorded growth rates of 51.9 percent and 16.1 percent respectively.

Noting that such achievements were made through product and channel innovation, improved channel reach and higher yields on investments, the Group CEO said return-on-investments and return-on-assets improved to 26.1 percent and 15.9 percent as against the previous year's figures of 25.3 percent and 12.5 percent respectively.

The group also met the proposed regulatory minimum capitalization requirement of US$5 million each in Enterprise Insurance Company Limited and Enterprise Life Assurance Company Limited.

Total capitalization in the group amounted to GHC15.3 million.

'Additionally, we met a capital call from Enterprise Trustees Limited of US$1 million,' he stated, adding 'Our first offshore venture in The Gambia is looking promising.'

However, overall claims grew by 38.8 percent.
'Going forward, we envisage further substantial capital funding requirements in respect of new redevelopment projects in properties and the proposed funeral business.'

There were two new entrants into the insurance industry last year bringing the total number of industry players to 24 in the General category and 18 in the Life category.

 By Samuel Boadi