The Deputy Minister of Finance has called on the reconstituted board for the National Insurance Commission (NIC) to help the Commission to strategize and retool to improve its effectiveness and efficiency.
Speaking at the inauguration of the NIC Board in Accra, Kwaku Kwarteng also urged the Board to ensure that the NIC improves its compliance with Principles of the International Association of Insurance.
The Deputy Minister expressed his displeasure with the current 2% penetration rate, which he said must be substantially improved to enable the insurance industry play its expected role in the economy. In comparison, he said, developed economies have penetration rates above 15% and owned most of the banks.
As a measure to improving the penetration rate, the industry, he opined, must improve its corporate governance and risk management culture.
“Insurance companies must adequately capitalize to ensure that they are strong efficient and profitable” he added.
He further urged the Board to put in place strategies that would ensure fair treatment of policy holders and that grievances of claimants are readily addressed.
On the Insurance Bill, Charles Adu Boahen tasked the Board to resume work on the Bill and ensure that it is passed into law.
The Chairman of the NIC Board, Emmanuel Ray Ankrah, in his acceptance speech thanked the President on behalf of Board members for the opportunity and honour given them.
He acknowledged that with the penetration rate as low as 2% there was a lot of work to be done.
The Board Chairman said organizing long-term funds for the transformation of the economy was crucial. He said he had no doubt that with the caliber of people constituting the Board, much would be achieved to the transformation of the economy.
Board members sworn-in were, Emmanuel Ray Ankrah, Chairman; Sampson Akligloh, Kwame Yao Agbenydzie, Geta Striggner Quartey, Emmanuel Amofa, Justice Yaw Ofori and Bill Pupulampu.
In a related development the Deputy Minister of Finance also inaugurated the National Investment Bank’s Board members.
He recognized the banking industry’s contribution to the Ghanaian economy. Adding that various strategies had been put in place to set the path of economic transformation.
He therefore urged the Board to take advantage of this and help the bank take full advantage of the emerging economic transformation
Charles Adu Boahen, traced that the bank’s beginnings to the end of the Second World War, when the bank then known as the ‘Gold Coast Industrial Development Corporation (GCIDC)’ was established in 1952 to provide financial support to the indigenes for the establishment of their own businesses.
He said the National Investment Bank (NIB) was incorporated as an autonomous joint state-private institution on March 22, 1963, to promote rapid industrialization in all sectors of the economy.
The Deputy Minister commended the previous Board for its involvement in Dominion Trust case at the Supreme Court that saved the country a substantial sum of money. He urged the Board to work assiduously to promote rapid industrialization and job creation.
The Board Chairman, Togbe Afede XIV, on behalf of Board members thanked the President for the confidence and opportunity accorded them. Togbe Afede said he regarded it as an endorsement of his leadership of the previous Board.
He pledged the Boards commitment to be guided by the principles of public interest and honesty. He said the Board will also be guided by governments developmental agenda of One-district-one factory, Jobs for the people and Ghana beyond aid. He considered these developmental goals as being consistent with the banks aspirations.
Members sworn-in were Togbe Afed XIV, Board Chairman, John Kweku Asamoah, Michael Ayesu, Dennis Adjei Dwomoh, Lyn Allottey Gadzekpo, Ken Kanyagui, Ronald Akosah, and Etse Gadegbeku.