GRO: NEM Insurance Company launches onto Ghanaian market

One of the Newest Nigerian Insurance Company in Ghana, NEM has formally been launched onto the Ghanaian market. NEM Insurance Company has formally been incorporated in Ghana and granted approval by the National Insurance Commission to transact all classes of non-life insurance business among others. NEM is listed on the Nigerian stock exchange with share capital of 2.5billion Naira with a share holder fund of over4.0 billion Naira and in existence since 1948.

Performing the launch yesterday in Accra, the chairman of NEM Insurance Ghana limited, said stakeholders in the insurance industry in the country should take steps to review and update the relevant laws, requirements, policies and guidelines regulating the insurance industry so that insurance companies in the country will be better enabled to meet the challenges of the future of oil-rich Ghana.

Edward Pianim added that “with Ghana’s development, consideration should be given to the scope of some classes of insurance and improve them”. This includes compulsory comprehensive insurance for all commercial vehicles instead of the present compulsory third party insurance. Government should consider insuring its vehicles instead of being its own insurer and state organizations should also be directed to shop around in order to create a level playing field for all insurance companies.

“Insurance for workmen compensation should be made compulsory so that adequate and timely compensation would be paid to injured workers. Marine insurance should be taken in Ghana and if need be, made compulsory so Ghana may benefit from the anticipated imports for oil and related industries” he said.

Painim advised that Ghana needed to urgently expand and strengthen its insurance industry to increase investment, create jobs and enhance state revenue to increase investor threshold and most importantly maximize the retention of insurance and reinsurance premiums in Ghana and in the ECOWAS sub-region.

The Deputy Commissioner of Insurance, Ghana disclosed that the total penetration of insurance in the country was very low at a percentage of total gross premium income to the country’s Growth domestic Product (GDP) at 1.57 %.

Nyamikeh Kyiamah said “this becomes obvious if one considers the facts that the majority of Ghanaians are who operate with in the informal sector are yet to be insured”.

The Commissioner urged NEM Insurance Company to play an active role in the search for solutions for the challenges facing the industry not to just add up to numbers.