Unique Insurance poised to sustain strong growth

Mr. Obeng-Adiyiah

Mr. Obeng-Adiyiah

Unique Insurance Co. Ltd says it is poised to making the brand a household name, sustain and improve its sterling performance despite the difficult economic conditions that confronted businesses last year.

The company is owned by influential local workers’ unions, a financial house and high net worth individuals. Ghana Mine Workers Union, Jislah Financial Holdings, TUC, including the Ghana National Association of Teachers and other cooperative organisations are the shareholders of the company.

Record growth

Unique Insurance Co Ltd (UIC) which has seen a marked improvement in its performance recorded 9.2 million cedis in income revenue in 2015 as against 6.3 million cedis recorded in 2014.

Speaking in an interview with Times Business in Accra the Managing Director, Mr. Victor Obeng-Adiyiah said in total, the company grew by 46 per cent last year  which is unprecedented in the history of the company.

He said the company had also chalked a very important feat by ending last year without any outstanding claims which he described as very magnificent achievement.

He attributed this performance to strategic measures put in place by the board, management and staff.

“We have three key areas that we focus on in our new face. They are our open door policy by management, excellent customer service and prompt payment of genuine claims. In the area of open door policy, we’re talking about all inclusive management where there is no boss no subordinate we are all one. A rare team work,” he said.

The industry growth rate has been averagely 18 per cent over the last six years. The company has set an ambitious target to encourage additional growth in the coming years by winning more business from brokers and customers which will increase our market share by 2 per  cent.” Mr. Obeng-Adiyiah said.

 

Challenges

He cited premium undercutting as one of the major challenges confronting the industry adding that the practice was having a negative impact on the growth of the industry.

He explained Premium undercutting as the practice where an insurance company secretly offers clients unrealistically low premiums in order to gain a competitive advantage.

It must be emphasised that the practice is unethical as the National Insurance Commission (NIC) and Commissioner do not take kindly to that. The motive of engagement is usually to increase the business portfolio, but this invariably depletes the insurer’s reserves, making it difficult for them to honour claims sometimes.

He said the phenomenon must be nipped in the bud before it consumes the industry. We thank the National Insurance Commissioner for putting in place strict measures to punish companies that indulge in that.

 

Outlook

Mr. Victor Obeng-Adiyiah said the outlook for Unique Insurance and the industry as a whole was very bright and described the recent increment in insurance premium as very positive for the industry.

He said the penetration of the market by insurance companies would perhaps deepen with the enforcement of Fire Insurance Act 724 section 184 (1) that  says “every commercial building shall be insured with an insurer against the hazards of collapse, fire, earthquake, storm and flood, and an insurance policy issued for it”.

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