GN Life Assurance Company Limited (GN Life) is the latest life insurance company to join Ghana’s life insurance market.
This follows the formal launch of the company in Accra yesterday following the start of operations in July 2015.
The company acquired operations license from the National Insurance Commission (NIC) in September 2014.
In his welcome address, Chief Executive Officer (CEO) of the Company, Mr. Fiifi Simpson, explained that prior to the start of operations, his outfit decided to take advantage of Groupe Nduom (GN) which it belong to by establishing a bancassuarnce relationship with another entity in the Groupe, GN Bank.
He stressed that relationship has given his outfit access to over 227 branches and locations across the country with 200 financial advisors recruited and trained to sell GN Life products to the over 500,000 GN Bank customers.
Mr. Simpson announced plans to set up his outfit’s own branches in some strategic areas of the country adding that two insurance brokers have been brought on board.
He explained that the country’s informal sector is much larger than the formal sector hence his outfit will focus on targeting persons in the former.
“At the heart of our operations will be prompt claims payment and a customer service centre approach to our service, this will be supported by a tested and robust system to ensure the company leads in the life insurance category,” he assured.
In a goodwill message read on her behalf by Managing Director of GN Bank, Mr. Issah Adams, Board Chairperson of the GN Life, Mrs. Nyamikeh Kyiamah, indicated her hopes that the company will dominate and contribute to the growth of the sector.
In an address, Chairman and President of GN, Dr. Papa Kwesi Nduom, paid tribute to existing insurance companies – GLICO, SIC, Star Assurance, Vanguard Assurance, Enterprise etc. for being pioneers and paving the way.
He equally appreciated the efforts of the NIC headed by Ms. Lydia Lariba Bawa for the implementation of the low premium cover and the introduction of local content in the insurance sector.
According to Dr. Nduom, death should not leave misery for families left behind hence the entry of GN Life to help change the status quo.
He bemoaned the low spread of social protection in the across the country and hoped the introduction of GN Life will help democratise the sector.
“What we at Groupe Nduom wants GN Life to do is to lead the insurance revolution in Ghana – which is to take life insurance to the door step of every Ghanaian, knock on every door and make it feasible for every Ghanaian to acquire this social protection,” he said.
The GN President added that bancassurance when operated under excellence can provide funds for expansion of company operations and create thousands of jobs for people.
He concluded by charging management of the company to relive the GN mantra and work with enthusiasm, discipline and innovation.
Commissioner of Insurance, Ms. Lydia Lariba Bawa, in her keynote address congratulated shareholders, directors and management of GN for the feet attained.
She disclosed that Ghana currently boosts of 23 Life, 26 Non-Life and 3 Reinsurance companies.
Ms. Bawa added that as at the end of 2015, the total gross of premium stood at GHC1.6 billion shared GH45 million and GHC55 million by the Life and Non-Life insurance sectors respectively.
She lauded the growth saying it was better than former years but decried the sector’s contribution to the country’s GDP – still under less than 1% as compared to 3.1% for Kenya and 3.7% for Mauritius.
The NIC boss boasted about the fact that Ghana’s micro insurance sector was being talked about across the world.
“As at December 2014, micro insurance covered about 7.5 million lives representing 29% of the population. This gives a lot of hope. As the saying goes, the micro insurance businesses of today when nurtured will become the conventional insurance businesses of tomorrow,” she said.
She further disclosed that a committee has been set to look into the sector and propose ways the sector can be made better.
She added that based on a report by Ernest & Young, the NIC has issued and implemented a risk-based capital framework which began January 1, 2016 which requires insurances companies to meet new minimum capital and capital adequacy ratios – “GN Life meets both requirements,” she annouced.
Ms. Bawa explained that the new framework to ensure proper fiscal requirement has been put before the board of directors.
She concluded by urging all players in the insurance industry not see the reforms as regulatory requirements but how its implementation can ensure their profitability and financial soundness.
She hoped to be invited to launch the GN general insurance soon.
Source: Ghana/todaygh.com/RCHARD K. A. AGYAPONG