Play by the insurance rules for survival - NIC Boss Justice Ofori
| Updated Sep 06, 2017 at 4:13pm
Mr Justice Yaw Ofori, Insurance Commissioner launching the new company
Mr. Frank Yeboah, MD Loyalty Insurance
Mr. Justice Ofori, second from left and the MP for Gomoa East Kojo Asemanyi (right) together with top executives of Loyalty Insurance after opening the office
The Commissioner of Insurance and Chief Executive Officer of the National Insurance Commission Mr. Justice Yaw Ofori says players in the insurance industry should work harder to raise the level of confidence in the sector. He said it is important for insurers to comply with the directives issued by the Commission to ensure their survival and ability to pay claims as a way of helping the desired confidence.
Mr. Ofori stated this at the launch of Loyalty Insurance in Accra on Wednesday. He added that the issue of undercutting is adversely affecting the insurance industry and the liquidity of companies making it difficult for them to pay claims. Mr. Ofori added that undercutting means underselling and it is not in the best interest of the industry. He cautioned that in addition to the rules and guidelines of the National Insurance Commission, there are sanctions. Companies who therefore flout the regulations would suffer the penalty.
In a follow-up interview with GBCONLINE, Mr. Ofori explained that it is vital for shareholders to know their limits in relation to the management of insurance companies.. They cannot be involved in policy direction and operational matters. Directors on the other hand should be firm with their policy directions.
He hoped that as a new entrant, Loyalty Insurance will play by the rules and will contribute to the ultimate objective of improving insurance penetration.
In explaining their contribution to the sector, the Managing Director of Loyalty Insurance Mr. Frank Yeboah stated that their company’s objective is to be the first indigenous company with global presence. He said they will do this by deploying new technology in selling their products. He acknowledged that internet access is a challenge for part of the target but they have a platform that makes it possible for all to be assisted directly on their mobile phones.
Mr. Yeboah, told GBCONLINE that there is a seemingly accepted view that people take motor insurance for instance as a matter of compulsion but “we want to make insurance a primary need and for people to desire it”. He said they are already working on this with prompt claim payment within five working days. This, he said will “create a level of confidence in the system”.
As part of their values, Loyalty Insurance wants to push speed, integrity and professionalism with social responsibility to support society in variety of ways.
Story: Kingsley Obeng-Kyereh and Mabel Adorkor Annang