NIC launches collateral replacement indemnity insurance policy

Business & Finance NIC launches collateral replacement indemnity insurance policy
FEB 3, 2012 LISTEN

Accra, Feb. 3, GNA – The National Insurance Commission (NIC), on Friday launched Ghana Unions Assurance's new financial mortgage Collateral Replacement Indemnity Policy (CRI), in Accra.

Mrs Nyamikeh Kyiamah, NIC Commissioner, noted that the responsibility of insurance companies in Ghana to provide world-class insurance products and services to customers had increased with the emergence of well-informed consumers.

“Housing represents a very important aspect of the aspirations of the Ghanaian society, therefore, any policy, scheme or product that helps individuals to access mortgage financing without the need for a relatively huge initial financial commitment is a welcome development and needs to be encourage and nurtured to succeed,” Mrs Kyiamah said at the launch of the policy.

The event was attended by insurance stakeholders, government officials, parliamentarians, business entrepreneurs and financial operators.

The policy, “GUA Collateral Replacement Indemnity (CRI)", targets borrowers in the lower to middle income mortgage market without the requisite deposit usually demanded by mortgage financing companies but have the capacity to pay if spread over a period a financial mechanism to access a home.

The CRI insurance package would bridge the vacuum and help the low and middle income earners to own their houses and also free up resources for other investments.

Mrs Kyiamah noted that the banking and insurance industry lacked the capacity in terms of provision of adequate support for housing finance, especially for the middle and low-income individuals.

She said NIC would continue to encourage and support such innovative and competitively priced insurance products that were responsive to customers' needs..."NIC will continue to cooperate with other regulators in the financial service sector to address cross-sectoral issues in order to ensure the protection of policyholders and other stakeholders”.

Mrs Kyiamah said in view of the development within the insurance sector, NIC has signed a memorandum of understanding with Bank of Ghana, the Securities and Exchange Commission, and the National Pensions Regulatory Authority in the area of supervisory cooperation and information sharing.

She said NIC had in addition, developed and currently implementing policies and measures to solidify the growth and stability of the insurance industry.

Mrs Kyiamah said the Commission would continue to support initiatives, to help the development and growth of the insurance industry while protecting the interest of insurance policyholders.

Dr Mustapha Ahmed, Deputy Minister of Water Resources, Works and Housing; Nana Agyei Duku, GUA Managing Director, and Ms Aretha Duku, GUA Deputy Managing Director, joined Mrs Kyiamah to launch the product.