NIC to Address Undercutting of Insurance Premiums

The Commissioner of National Insurance Commission(NIC), Justice Ofori has told Citi Business News the commission is working to produce the right mechanisms to aid in addressing issues of undercutting insurance premiums by the end of March.

The Commissioner says the constant undercutting is a major setback to the insurance industry.

The development follows the undercharging of premium by some Brokers, affecting the solvency of the insurance industry.

Mr Ofori says the issue will be addressed soon.

“It’s a burning issue because undercutting is actually affecting the solvency of insurance companies and we at the commission, we have a mechanism that we are going to bring out hopefully by the end of the third month of this year. We hope that will actually help us address this challenge of under pricing or under cutting” he assured.

Mr. Ofori spoke to Citi Business News at the sidelines of the 30th-anniversary launch of the Ghana Insurance Brokers Association(GIBA) and swearing in of executives.

The ceremony saw Mrs. Lena Adu-Kofi, sworn in as the first female president of GIBA.

She has nearly thirty-two years of management, leadership and industry experience with thirty of those years dedicated to the insurance industry.

She is a Co-Founder of Safety Insurance Brokers Limited and the first woman to be licensed as an insurance Broker in Ghana.

She takes over from Mr. Nathan Adu.

While giving her acceptance speech, Mrs. Adu-Kofi urged all brokers to strengthen their relationships with other bodies, while stating that GIBA will become a national council under her watch.

“The legal committee, which I chair, has started the process by dialoguing with our colleague brokers in Nigeria, who have already achieved council status since 2003. There is still more work to be done, but, I am hopeful that the objective is highly attainable during my tenure of office” she stated.

The other elected executives of the council include; Mr. Shaibu Ali, Vice President, Mrs. Ekua desBordes-Jackson as the General Secretary, Mr. Stephen Kwarteng Yeboah, Treasurer and Mr. Henry Kom the Assistant General Secretary.

The rest are, Mr. Denis Guddah, Assistant Treasurer and Mr. Nathan Adu as the Ex-Officio Member.

Source: Citibusinessnews