By Patience Saghana
Ghanaian Vice President John Dramani Mahama has admonished insurance companies operating in that country against over dependence on third party insurance business
He said insurance operators should learn to depend less on third party business and explore other areas of generating income
He cautioned that over- reliance of insurance companies on third party premiums should give way to more innovative means of insuring people as in the banking sector.
He thus advised practitioners in the sector to adopt new strategies in expanding the sector so as to make it a major player in the economy than it is at the moment.
The Ghanaian VP during an interaction with the management of NEM Insurance Ghana Limited expressed his concern about the unwillingness of the insurance industry to introduce new products that would increase their base, compared to the banking sector. He said the sector must be among the new frontiers in investment by employing new technologies in consonance with the ECOWAS Commissionâ€™s vision of a borderless West African society.
Mr. Mahama asked the management of NEM Insurance, which would be inaugurated next month, to break away with the conservative attitude in the Ghanaian insurance market and introduce measures that would expand their services to all parts of the country. He said an unfortunate trend that had emerged as a result of this scenario, which mainly festers on the ignorance of drivers, is the reluctance or refusal of some insurance companies to pay off their customers.
Vice President Mahama therefore called on the National Insurance Commission to crack down on all such illegalities, and as well educate drivers on their rights so that the continued ripping off by the industry would be curbed, if not totally obliterated. He observed that many drivers, who take up such polices, end up repairing their vehicles, especially those involved in accidents, instead of being reimbursed by the insurance company they took the policy with.
The Board Chairman of NEM Insurance, Edward Painim, said his outfitâ€™s entry into the Ghanaian market was to enable it to play a role in the agriculture and oil sectors, two industries, he said, holding the promise of Ghana becoming an industrialized nation.