Insurance Sector Contributes 1.4% To GDP

Simon Davor
Simon Davor, Deputy Commissioner at the National Insurance Commission (NIC), has disclosed that the insurance sector contributed only 1.4 percent to the Gross Domestic Product (GDP) in 2013.

According to him, the figure was not encouraging; adding that in South Africa the sector contributed 15.2 percent to South Africa’s GDP last year.

Speaking at a press briefing in Accra yesterday, he said about 5 percent of the Ghanaian population have access to insurance, stating that only 1.7 million Ghanaians have insurance policy to protect their lives and property.

In view of that, he said the Commission plans to embark on sensitization programme, which will help educate the public on the need to obtain insurance policies.

Mr Davor said currently all the insurance policies available now are concentrated in the former sector, explaining that ‘the informer sector is completely neglected and targeted market products must be developed for the sector.’

‘As at now, we have about 80 different products which are being offered by seven insurance companies. Now we are developing product for everybody; the formal and the informal, the rich and the poor.’

Enforcing Fire Policy
Mr. Davor said the Commission was focusing on enforcing the compulsory insurance fire policy for private commercial properties.

He said Section 183 & 184 of the Insurance Act states clearly that every private commercial property should have an insurance policy.

Mr. Davor however said the violation of the law had resulted in the collapse of buildings recently.

He said the Commission had formed a taskforce, who will soon be deployed to inspect private commercial properties, stating that those found culpable will be dealt with according to the law.

He said currently there are about 80 life insurance companies in the country and 26 non-life insurance policy insurance companies in the country which offer varied products which will meet the needs of the customers.

Mr. Davor called on Ghanaians to patronize these insurance products to secure their future.

He urged the public to lodge complaints with the Commission or Ghana Insurance Association for redress.

‘We want the public to have confidence in the insurance sector. Without the confidence, the sector can’t achieve much,’ Mr Davor said.

By Cephas Larbi
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