Chief Executive Officer of GN Life, Mr Fiifi Simpson, says investors are always looking for new companies to invest because of low penetration rates.
According to him, investors see opportunity in West Africa, hence their desire always to invest in Africa.
He made these observations at a symposium yesterday in Accra organised by Donewell Insurance Company Limited (DICL) as part of its 25 years anniversary celebration.
“As an industry we need to position ourselves in a way that gets us the recognition we deserve,” he said.
The Commissioner of Insurance, Mr. Justice Ofori, who was the guest of honour for the occasion revealed that there are 81 broking insurance companies, 28 non-life insurance companies, and 24 life insurance companies in Ghana.
According to him, “Morocco has 446 broking insurance companies, but only eight non-life insurance companies and two life insurance companies”.
He noted that despite these numbers, Morocco had a higher penetration rate of 3.5%, while Ghana was at about 1.2%.
He went on to explain that part of the problem was the continuous creation of too many broking insurance companies.
“It is worrying that rather than addressing the issues, more and more companies are being registered with shareholding structures creating problems”, he said.
According to him, “a significant step in preventing this issue is to address the problem, and to look for strategies that are marketing oriented.
“Some of these strategies could include enhancement of capital, stringent regulation on premium companies, delisting of companies that cannot meet the minimum capital requirements, and self-regulation by insurers to address technical problems,” he said.
The event was to discuss current issues and trends within the insurance industry.
Other speakers included Mr Seth Eshun, Head of Supervision at National Insurance Commission (NIC), and Mr Ofori Kuragu, MD, AP & L Consult.
Story: Elizabeth AMARFIO & Emily SCARVIE,
Intern, UNIVERSITY OF OREGON, USA