A Director of the Nigerian Insurance Commission, Barineka Thompson, has urged the National Insurance Commission (NIC) to expedite action on the ‘no-premium, no-cover’ policy under which clients of insurance companies would be required to pay upfront for their insurance cover.
According to him, insurance companies in Ghana would benefit immensely from the new policy, which is expected to come into effect from April 1, 2014.
Mr. Thompson was invited to share the experience of the Nigerian Insurance Commission with the NIC on Thursday in Accra.
He said the introduction of the premium had improved the Nigerian insurance sector significantly.
He said the ‘no-premium, no-cover’ was about risk, corporate and ethical behaviour management, adding that it helped insurance companies to learn financial management as well.
From the onset insurance companies might find the new policy very much unprofitable but with time they would begin to realize that it’s beneficial, Barineka said.
He pleaded with his Ghanaian counterparts to collaborate effectively with regulators in the country by filing their returns on time to ensure that the new directive becomes successful.
“We must all resolve and collaborate for this directive to be a success because we all in the industry stand to benefit a lot from it,” he said, adding that the law is not for regulators or government alone.
The business environment has changed and so insurance companies must understand that regulations have to change to match up with the new business environment, according to him.