MANAGING Director of Activa International Insurance, Mr. Solomon Lartey, has urged players in the insurance industry to make insurance a driving force of the economy.
He has subsequently called on regulators to educate Ghanaians on the need to insure lives and properties.
According to him, without insurance, lots of companies and institutions would collapse, and called on government to ensure its sustainability.
Speaking in an interview with Weekend Today, Mr. Lartey explained that insurance companies are supposed to collect money and use it to settle claims.
“If an insurance company is unable to collect money and invest in business what would be the fate of most companies and individuals. Insurance companies are supposed to pay claims first and invest in specific areas of the economy,” he said.
He further explained that, the development of insurance markets is directly linked to the economic fortunes of countries.
It is, therefore, he added, expected that sustained economic performance in Ghana would result in an increase in the rate of insurance penetration.
Mr. Lartey noted that a careful study of both demand and supply aspects of the happening of squat infiltration would be a necessary backdrop in establishing strategic initiatives to strengthen insurance penetration.
In view of this, Mr. Lartey said, efforts should be made by national insurance regulatory bodies through rationalised and stringent directive, and by national insurance associations, through self-regulation and compliance with established codes of industry ethics that would boost insurance patronage.
The MD of Activa revealed that 2015 was a bad year for many insurance companies in Ghana including Activa International Insurance.
He said the year began with a chain of fires, largest among them was the Melcom warehouse fire at the Industrial Area in Accra and the 3rd June floods which several lives were lost following the explosion of the GOIL filling station at Kwame Nkrumah Circle, Accra.
He noted that Activa International Insurance was one of the hardest hit companies, but the company battered the storm quite well, and paid over Gh¢70 million claims due to client in a single year.
Mr. Solomon Lartey noted that many people, especially in Africa, do not appreciate the essence of insurance; having the wrong conception that insurers collect lots of money but do not pay anything out.
In response, the MD explained that Activa never collected premiums worth GHS70 million in 2013, but paid claims well over the amount following the floods.
“Everyone needs insurance in preparation for the worst day,” he stated.
Activa Group is the originator of the Globus Insurance Network with representation in 40 African countries, whose members provide tailor-made insurance solutions to companies and individuals in African countries bridging Legal, Linguistic, and Monetary and Cultural boundaries.
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