THE NATIONAL Insurance Commission (NIC) is awaiting President Akufo-Addo’s assent to the insurance bill that was recently passed to begin implementing it.
Michael Andoh, Deputy Commissioner of Insurance, who disclosed this, said the Presidential assent would give the NIC the final endorsement to carry out the enhanced bill.
In December, last year, Parliament passed the legislation to increase the insurance penetration rate in the country and enhance the capacity of insurance companies to comply with international best.
Members of Parliament (MPs) backed the Insurance Bill 2020 by a voice vote after taking it through the process. It is intended to repeal the Insurance Act, 2006 (Act 724) to establish the National Insurance Commission (NIC) that will provide for the regulation and supervision of the insurance market.
Latest statistics indicate that the insurance industry has achieved a 20% year-on-year growth rate and that over 30% of Ghanaians have insurance, excluding pensions and health insurance.
The statistics further indicate that the total gross premium for the insurance industry for the year 2018 alone was GH¢3 billion. Such achievements, notwithstanding, the insurance penetration rate country wide remains at a relatively low figure,” the government said in a memorandum to the House.
The bill further seeks to increase the insurance penetration rate by developing a stringent regulatory framework to protect customers and prevent the collapse of the insurance industry, ensure that the insurance industry was regulated in accordance with international regulatory and supervisory standards in a bid to increase the competitiveness of the insurance industry of the country on the international market.
Again, it incorporates provisions which enhance the capacity of insurance companies to comply with international best practices as well as the introduction of risk based supervisory requirements.
The Insurance Act, 2006 (Act 724) was enacted to revise the law relating to insurance in order to provide a comprehensive legal framework to effectively regulate the insurance industry.
Act 724 was therefore enacted to address the weak regulatory framework which existed in the old legal regime.