Formalise informal sector for insurance growth – Govt told

The government has been urged to formalise the informal sector to enable insurance companies design products targeted at Small and Medium-scale Enterprises.

Solomon Lartey, the Chief Executive Officer of Activa Insurance who made the call said insurance must be seen as a tool to encourage private sector investment in national development; a tool to grow and sustain SMEs and a tool for financial inclusiveness.

Mr Lartey was speaking on the second day of the Ghana Economic Forum (GEF) on the theme: ‘Building A Ghanaian Owned Economy, 60 Years After Independence’, in Accra.

He said players in the insurance industry also needed to educate the public and create awareness on the relevance of insurance to their lives and property.

The event brought together more than 500 local and international business leaders to dialogue and chart a clear path for Ghanaian businesses to own the Ghanaian economy.

Some strategic issues that were discussed during the plenary sessions included: Macroeconomic trends affecting the global economy; the attributes that have allowed emerging market companies to play an increasing role on the international stage; the rise of the Ghanaian urban consumer; and the interrelated social and demographic changes creating new domestic engines of growth.

Speaking on: ‘The Role of Insurance in National Development: 60 years on,’

Mr Lartey said the government must provide a conducive environment for insurance companies to strive and drive in the national developmental process.

He said Ghanaians generally considered insurance as a foreign ideology, though the national culture promoted a safety net that safeguarded its people.

“The Ghana Association of Insurers has set up the agriculture insurance pool to provide insurance to the agriculture sector,” he added.

He urged the government and MMDAs to take advantage of the low cost of insurance to protect national assets.

He said insurance companies needed to strengthen their operations to be able to serve their clients effectively.

Dr Albert Gemegah, the Dean of Graduate School, Wisconsin International University College, said insurance companies needed to take a look at the whole area of micro-insurance for SMEs and other informal industry players.

He said industry players would have to design appropriate products and services that were appealing to all segment of the public.

“Micro-insurance is key to providing protection to the people in the informal sector,” he emphasised.

He said the industry should encourage people to go beyond taking third party insurance.

Mr Simon Davor, the Deputy Commissioner, National Insurance Commission, said the Commission would continue to monitor players in the industry to enable them provide better services to its clients.

GNA

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