Ghana Insurance Brokers Association has held its 6th annual conference and exhibition, 2019 under the Theme :Capitalization, What is Adequate?.
Speaking at the event last Thursday, Mrs. Lena Adu – Kofi(Safety Ins. Brokers limited), President of Ghana Insurance Brokers Association noted that, the event was organized to deliberate on a very topical theme, thus, “Capitalization, What’s Adequate?”
According to her, currently it is no news that, the National Insurance commission (NIC) is at the verge of increasing the Minimum Capital Requirement for market players in the insurance industry.
She said, Ghana Brokers Association and Ghana Insurance Authority have been engaged by the National Insurance Commission and at the meeting with Brokers, there were no crucial objections to the NIC’s proposal, thus, Brokers Association can infer from the outcome of the meeting that most of the broking firms are in support of the proposed increment and are likely to meet the new MCR within the time limits.
She said, as president of the association, she was elated to know from the NIC’s presentation when they met at Takoradi that, 50%of Brokers already have capital exceeding the proposed MCR of Ghc500, 000. In this case, she is quite sure that, majority if not all of the remaining companies, will be able to meet the requirement, by exploring the various options available, such as, through mergers and acquisition, and right issues, etc.
“We have the banking sector to learn from, whether Brokers or Underwriters, to address our capital inadequacies quickly to avoid unfavorable outcomes” .She said.
She noted that, having embraced the need to increase the MCR, the association as market players should be looking at the way forward, because adequate capital can serve as a solid foundation to induce growth in the companies and the industry at large.
Mrs. Lena Adu-Kofi revealed that, as Brokers, they need to be well resourced in order to hire qualified professionals, put in place effective systems and technologies to enhance their services in order to be much more efficient.
“We need to branch out, and manage our resources prudently, to position our recapitalization companies in a better position to serve our clients and the nation at large” . She noted.
She called on the industry to have a united front in their pursuit to educate the public on insurance.
Mr Yaw Osafo-Maafo, senior minister, who was the special guest of honour in his address deduced that, as a government of the ruling New Patriotic Party, they had to take tough decisions to sanitize the banking sector. Additionally, the npp is interested in what they could do to help promote insurance penetration as well. In persuit of that, the economic management team of Nana Addo’s government had meetings with their leadership to know from what they could do to change the fortunes of the businesses and the economy.
He said, the chosen theme for the conference :”Capitalization, What Is Adequate?” was not only sensitive to events currently happening in our country but it also opens up the broader discussion on what we need to do to grow the insurance industry.
He indicated that, capital is the lifeblood of every business. Businesses are born with capital and it is capital that sustains business. No business, he said, can survive without appropriate capital.