By
Joyce Danso, GNA
Accra Oct. 26, GNA- Insurance companies have
been tasked to consider marketing annuities for pensioners instead of allowing
them carry their lump sums home.
Mr Kofi Andoh, Deputy Commissioner of the
National Insurance Commission (NIC), said although annuities are not part of
the country’s insurance products, it would be good for industry players to
explore it and make the public appreciate its advantages as the Social Security
and National Insurance Trust (SSNIT) ends lump sum payment in January 2020.
Speaking at the Ghana Insurers Association
Investiture of President and Swearing-in of new board members in Accra, Mr
Andoh said contributors of SSNIT would have to turn to fund managers of their
second tier contributions for lump sums.
He said annuities are good, hence the need
to build the capacity of insurance companies adding that government should also
develop investment markets for businesses to thrive.
Mr Andoh said the development of investment
market would generate regular cash flow and help scale-up economic growth.
Mr Andoh said “we need people to
understand and buy annuities as SSNIT ends the payment of lump sums.”
Annuity is a fixed sum of money paid to
someone each year typically for the rest of their life. It is also a form of
insurance or investment entitling the investor to series of annual sums.
The Deputy Commissioner said as the country
embrace the African Continental Trade Agreement, it is necessary to
re-strategise, increase capital investment and ensure good corporate governance
in order to compete in other countries.
He called on insurance companies to take a
second look at issues concerning climate change and agriculture insurance.
“We also need electronic marine
insurance database. Currently marine businesses are struggling and we need to fix
that,” Mr Andoh said.
Nana Dr Appiagyei Dankawoso I, President,
Ghana National Chamber of Commerce and Industry, who chaired the ceremony,
questioned why banks were taking over from insurance companies.
Nana Dankawoso said the passage of the New
Insurance Act was going to provide micro and agriculture insurance which would
boost insurance penetration.
He cautioned insurance companies on the need
to be wary of electronic crime which has cost banks of GH¢ 110 million in
recent times.
Ms Aretha Abena Abrafi Duku, the President
of GIA, was reelected to serve another two year mandate. The GIA has currently
20 life insurance companies, 29 non- life insurance companies and four
reinsurance firms.
Ms Duku, the 10th President of the
Association, and the nine member board were sworn into office by Mrs Justice Angelina
Mensah Homiah, a High Court Judge.
Ms Duku said there is the need to intensify
insurance education among the public adding that “we are going nowhere
without insurance education.”
The President of GIA said the Association
will be introducing an online magazine that would reach out to more readers and
educate the young ones.
Ms Duku said the GIA would begin with
cartoon sketches for kids to whip up their interest as well as educate them on
insurance adding that “we should never undermine children’s ability to
interest adults in purchasing insurance policies for their future,” she
said.
She said the Association was also going to
get its forensic laboratory as well as embrace technology in order to come out
with innovative insurance products.
“We want an insurance industry that is
respected… an industry that lives up to its global legacy as a pillar of any
economy, one leading with innovative technology and best business practices
internationally,” Ms Duku said.
GNA
