The Ghana Insurers Association (GIA), has called on the government of Ghana to ensure that funds of insurance companies are released to improve liquidity.

According to GIA in a statement copied to GhanaWeb, some insurance companies are unable to meet the needs of their insurers because they have their funds locked up in the banking clean-up exercise.

GIA further stated that, insurance companies must be exempted from the domestic debt exchange.

“In uncertain times like this, entities must protect their assets through insurance, which is the key risk management tool. Anything short of an exemption will have far reaching consequences for the insurance industry and the important role they play in protecting assets and liabilities of this country.

“This will also discourage the citizenry from taking up life and annuity policies,” the statement by the Ghana Insurers Association explained.

“Insurance has been identified as one of the important tools for increasing financial inclusion from the current 58% to 75% by the year 2023. There must therefore be actions of government that repose confidence in insurance. This is important to help formalize the informal sector (which constitutes over 80% of the Ghanaian workforce).

“Finally, some insurance companies have their funds locked up in banks and other institutions which were part of the banking clean up. Government should ensure release of these funds to the insurance companies concerned. This will help improve liquidity,” the statement concluded.

Find below the full statement