Graphic Business News

NIC targets SMEs to boost insurance penetration

By: Emmanuel Bruce
Justice Ofori

In its bid to increase insurance penetration in the country, the National Insurance Commission has organized a workshop for small and medium-sized businesses on the need for insurance.

The workshop, which brought together members of the Greater Accra Markets Association and other stakeholders, gave the NIC the opportunity to educate them on the benefits of insurance

Speaking in an interview it the media on the sidelines of the workshop, the Commissioner of Insurance, Justice Yaw Ofori, said it had become necessary to protect small businesses against unforeseen emergencies which usually resulted in loss of lives and properties.

“We want to educate them on the benefits of insurance and make them aware that we are all exposed to risks in life and for that matter, we need someone who will come to our aid when the unfortunate happens.

“We also want them to know that you don’t need to be rich to buy insurance. Most of the time people think insurance is for the middle class and the rich but this programme is aimed at micro insurance for the low income people and small and medium enterprises,” he said.

Explaining what micro insurance is, he said “it is the same insurance, just that the sum insured are small, with small premiums.”

Mr Ofori was also hopeful that the initiative would go a long way to improve insurance penetration in the country.

Penetration rate

According to the 2018 NIC Report and Financial Statement, Insurance penetration rate dropped to 1 per cent from the previous rate of 1.12 per cent – a situation blamed on the rebasing of the economy.

The sensitization programme follows the NIC’s quest to get a New Insurance Law passed before the end of the year. The new law will introduce a strategic paper setting out the feasibility, modalities and the legal framework for micro-insurance and agricultural insurance.

Micro-insurance seeks to offer simplified insurance cover for micro and small scale entrepreneurs and their assets.

According to the NIC, the premiums involved have been made very affordable to entice the small business operators.

President of the Greater Accra Market Association, Mercy Naa Afrowa Needjan, lauded the initiative by the insurance commission. She believes it will secure their businesses and future.