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Gov't To Partner Private Sector To Make Financial Services Stronger

Aug. 18, 2015, 8:03 a.m.


The minister of state in charge of Public Private Partnerships, Alhaji Dr. Abdul Rashid Pelpuo, has stated that government will do all within its means to strengthen private sector players in the financial services sector to ensure they help to propel the nation to a higher status than it is today.

Pelpuo noted the Minister of Finance during the mid-year review of the budget statement stated many actions government is taking to ensure that we turn around the economy for businesses to thrive and propel the overall performance of the economy.

The minister was speaking over the weekend at the annual Metropolitan Group’s award scheme for clients and employees dubbed “Night of the Stars” in Accra.

He further stated that the insurance and pensions trustee companies are important players in the economy because, they mobilize critical funds which they can place in investments and these funds are also needed to help in the provision of infrastructure and for the development of the country.

Government is committed to strengthening insurance sector and is currently working on a new insurance bill which would be passed into law soon. Additionally, the December 2015 deadline by the National Insurance Commission (NIC) for both Non-Life and Life insurance companies to recapitalize is to streamline the operations of the companies in the sector and ensure growth and health competition.

Similarly, the National Health Insurance Authority (NHIA) has set a September deadline for mutual schemes to convert to commercial schemes. This is to help make sure that only strong companies with the financial muscle operate in the sector.

The National Pensions Regulatory Authority (NPRA) is strenuously working out modalities and reconciliation to transfer funds received by SSNIT from 2010 since the coming into force of the new pensions act to ensure that you have full control of your funds to offer better pensionable funds to Ghanaian workers who have toiled to make these monies.

Alhaji Dr. Pelpuo said the measures are to make private sector players stronger and government will put in place legislations that would support you to ensure you grow for it is only in this that there economy can expand and provide more jobs for the youth of the country.

The CEO of Metropolitan Life Insurance and executive director of Metropolitan Health Insurance and Metropolitan Pensions Trust AJ Kruger in his welcome address stated that the penetration rate of insurance in Ghana has been continuously quoted over the years and though new ideas such as Bancassurance are taking roots in the industry, the penetration rate has barely improved. This makes it an imperative objective to motivate our sales channels to take advantage of the low penetration to the ultimate benefit of our clients, our Metropolitan companies, the industry and the Ghanaian economy as a whole.

Mr. Kruger added that the current performance of the Ghanaian economy is posing many challenges to businesses and the Insurance sector is no exception, but in that challenge is the silver lining. The need for insurance and savings products to cover the risks of the unknown becomes even more imperative in challenging economic times. The need to provide for inevitable occurrences such as death or disability and the need to provide for future expenses such as a child’s education, health, income protection for the family as well as planning for retirement does not reduce with a reduction in the growth rate of the economy. To the contrary, the importance of these needs is highlighted during difficult times. So to you our esteemed sales teams, in the mist of the economic challenges lay a great opportunity i.e. to assist your potential clients to plan appropriately and adequately for their financial wellness with our various financial solutions. We are encouraged by the NICs efforts to make group life insurance co
mpulsory, and once a reality, it will significantly boost the growth of the Life insurance industry. Once the benefits of compulsory life insurance becomes visible, that will no doubt, mark the end of the low level of penetration of insurance in the country.

Awards were given to brokers with Gras Savoye (Gh.) Limited merging as the best broker for the year and All Risk Consultancy Limited placing second. Individual awards went to employees who excelled in their efforts over the past year.

Peter Quarcoo of the Koforidua office emerged the overall retail sales person for the year whilst the Life corporate team of Emma Ocansey and Vida Bervell won the corporate award. Other winners on the night were Daniel Doe, best zonal manager and Seth Sorgah, best branch manager. James Baiden – Amissah, Rita Zongbil and Daniel Sackey were adjudged best worker for Life, Health and Pensions operations respectively.

Three of the employees as part of the awards, Patrick Tekpor, Vida Bervell and Patrick Quarcoo will embark on a fully expensed paid trip to Cape – Town for tourism and site-seeing. They would also visit the Metropolitan International offices at Parc du Cap.

Source: Ghana/

Disclaimer: The views expressed in this news report do not neccesarily reflect  those of the National Development Planning Commission