Foreign Reinsurance Companies Cautioned

The National Insurance Commission (NIC) will penalise any foreign reinsurance company which flouts the rules and regulations governing their operations in Ghana.

Mr Simon Nerro K. Davor, Deputy Commissioner, who announced this at an Engineering Training Seminar for the Ghanaian Insurance Market in Accra, therefore, advised the companies to abide by the laws to help build the local industry.

The four-day seminar is being sponsored by Nouvelle Campagnie Africaine de Reassurance (NCA Re), a foreign Reinsurance Company, in collaboration with the Ghana Insurance Association (GIA) for senior staff members.

Mr Davor said the law required any foreign insurance company which wanted to operate in the country to establish a local office but some of these companies were operating without a local office.

He said the NIC was also unhappy with the manner in which some companies transferred their premiums abroad without the approval of the Commission, stating that, the foreign companies are mandated to pay some commission on their premium to the NIC and receive approval from the Commission before it can transfer their premiums abroad.

The Deputy Commissioner said reinsurance as an international business, could conduct their businesses without locating in Ghana but as soon as they engaged contact with a local person, they were required to establish a contact office as well.

Mr. Ivan A. Avereyireh, Managing Director of Ghana Life Insurance Company, and the President of GIA, said the association was keen on the training and re-training of staff and agents to ensure that customer service was perfected.

He said the penetration rate of the industry now stood between 1.5 per cent and two per cent and the current board was determined to increase the rate, adding that they were undertaking a database project with support from the GIZ to make it easier for individual companies to access a common data pool. —GNA

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