05.04.2005 General News

NIC to establish Insurance College

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Accra, April 5, GNA - The National Insurance Commission (NIC) would establish an Insurance College to train personnel of the Insurance Industry to make them more competent in their service delivery and to meet international standards.

Ms Josephine Amoah, Insurance Commissioner, said to promote effective conduct of business in the financial sector including the insurance market, there was the need to build the capacity of the personnel to discharge their duties with efficiency.

Ms Amoah was speaking at a commemorative seminar organised by Vanguard Assurance Company Limited as part of its 30th Anniversary celebration. It was under the theme: "The Role of Competition in the Growth and Development of the Insurance Industry in Africa."

She said the Insurance Bill and other new financial sector laws were in their final stages to be passed into law, which would enhance healthy competition in the Sector.

Ms Amoah said Insurance Supervisors all over the world encouraged and embraced fair competition due to the advantages it gave to policyholders but were against unhealthy practices such as premium undercutting and loose credit policies.

"This is because these unhealthy practices affect the solvency of insurance companies and their ability to pay claims to policyholders."

She said though the Insurance Regulator would be there to control the conduct of insurance business, it was important that practitioners collaborated to create a desirable competitive environment to engender growth.

Mr Johnny Wilcox, Managing Director of the United African Insurance Brokers, who presented a paper on "Emerging Issues in the Insurance Industry," recommended proper pricing and improvement in the regulatory framework and enforcement in the industry.

He said prospects in the Insurance Industry in Ghana were good adding that there was the need to develop good statistical database to guide underwriting and rate cutting.

Mr Wilcox called for the setting up of an Industry Repositioning Committee to advise the stakeholders in the industry on how to operate to take charge of their own destiny rather than waiting for institutions outside the industry to always determine the pace and direction of change.

Mr Emmanuel Baba, Chief Executive Officer of Vanguard Assurance, called for the setting up Premium Finance Companies to support clients since most of them could not pay the requisite amount. He urged the NIC to ensure that personnel did not flout the rules guiding the insurance industry.

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