23.06.2004 Business & Finance

Insurance contributes 1.7 trillion to development

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Accra, June 23, GNA- The Insurance industry has for the last five years contributed over 1.7 trillion cedis towards economic development in the country, Mr Kwame Achampong-Kyei, General Secretary, Ghana Insurers Association (GIA) said on Wednesday in Accra.

Speaking at an exhibition as part of the Insurance Week celebration, Mr Achampong-Kyei said apart from the industry creating employment for over 6,000 Ghanaians, it has also contributed to the manpower needs, revenue mobilization, investment generation, security and protection of enterprises.

Besides it has provided guarantee to life and property of individuals.

The exhibition, the first of its kind to be organised by the Ghana Insurers Association, brought together insurance companies to showcase their range of products and services.

He said harsh economic constraints under which insurance companies operated in the past affected their rapid growth and development and also stifled their contributions to the country's development. Mr Achampong-Kyei said such constraints had a negative effect on the financial benefits of individuals to the extent that policyholders and the insuring public did not find it worthwhile to purchase insurance. He was however, pleased at the current recession in inflation saying such downward trend would allow businesses and individuals to enjoy the desired financial benefits.

"We are gratified at the present economic policies embarked upon by government since it will give some respite to the insurers and the insured", he added.

Mr Wilson Tei, the President of the GIA asked members of the public to do away with the perception that insurance companies were not willing payers when it came to settlement of claims.

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