Ghana hosts maiden Micro Insurance Conference

Ghana on Wednesday hosted the maiden International Micro insurance Conference to provide the industry with creative ideas and practical implementation to manage livelihood risks.

Learning sessions have therefore been designed to provide international perspective on opportunities and challenges involved in providing micro insurance services, taking into consideration the current stage of development of the industry.

The event was organised by the National Insurance Commission of Ghana (NIC) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in partnership with three organisations engaged in the micro insurance sector.

They are Munich Re Foundation, a non-profit organisation founded by the global reinsurer Munich Re; Micro Insurance Network, an international network of multilateral agencies and the financial sector development initiative Making Finance Work for Africa.

Micro Insurance is a means of protecting households and small businesses in the informal sector from vulnerability caused by natural disasters or the sudden illness or death of a family member.

It is based on the premise that low-income customers need access to insurance products that are tailored to their needs.

Mrs Nyamikeh Kyiamah, Commissioner of Insurance, said micro insurance sought to reach out to customers that were not yet served by traditional insurance markets, and provide them with a valuable tool to manage their livelihood risks.

The NIC is actively spearheading the development of micro insurance in Ghana, particularly through the development of an appropriate regulatory framework for micro insurance products.

She said only 4.1 per cent of the total Ghanaian population held insurance policy in 2010, excluding public health insurance which stood at 1.89 in 20101.

Micro Insurance is a new and developing market which is likely to see even more expansion in the near future.

Mrs Kyiamah said with support of the GIZ and other partners, NIC now had the capacity to handle micro insurance in Ghana in the areas of policy framework and legal review, actuarial capacity development, research and development and technical services.

She explained that these areas informed the learning sessions for the conference and provided a platform for networking for key stakeholders in the Ghanaian insurance sector, engaged or interested in the development of micro insurance.

Mr. Torsten Schlink, GIZ Programme Manager for Sustainable Economic Development, expressed the hope that the conference would explain in detail polices and put in place strategies to push the industry forward.

Ms Claudia Huber, GIZ Advisor for Financial Systems Development, responsible for the micro insurance component noted that, its mission of making finance work in Africa was to establish a common platform for the harmonisation and facilitation of financial sector development and knowledge sharing in Africa.

The partnership brings together donor partners, African Governments, the private sector, and other financial sector stakeholders with the aim of unleashing the full potential of Africa's financial sector, in order to drive economic development and reduce poverty across the continent.

Mr. Dirk Reinhard, Vice Chairman, Munch Re Foundation, said though the industry in Ghana was not doing badly, more needed to be done to add value to the micro insurance market.

He said there was therefore the need to explore, research to find solutions to the needs of the people and urged policy makers to create the enabling environment and the needed framework to give the industry a boost.

More than 150 senior representatives from insurance companies, brokers, distribution channels, and other interested parties are attending the two-day conference.

Renowned speakers from Ghana, Kenya, South Africa, Ethiopia, India, USA and various European countries will provide international perspectives on the challenges and opportunities involved in providing micro insurance services to customers in Ghana.**