The insurance industry continues to tackle brand forgery, as most insurance products have the same features but packaged differently, Aaron Issa Anafure, Managing Director of SIC Life Company Limited, has indicated.

He made this known recently in Accra while delivering a report at the company’s Annual General Meeting (AGM).

He said the banking industry also presented a major challenge to insurers, as it continuously offers products that have the same features and benefits as those offered by life insurance companies.

He said as a result of the enactment of Insurance Law 2006, Act 724, there has been an influx of many life insurance companies, which has brought about stiff competition.

Prof Joshua Yindenaba Abor, Chairman of the company’s board of directors, who shared similar sentiments, said “I wish to indicate that the passing of the Insurance law 2006, Act 724 has brought about intense competition in the industry. Notwithstanding, as a market leader in the life insurance business, we will continue to remain consummate and proficient in our service delivery.”

Meanwhile, he said the company recorded a profit-after-tax of GH¢9,288,162 as against GH¢5,077,607 recorded in 2012, representing 83 per cent increase in profits.

The board recommended a total dividend of GH¢2,786,499 to be paid to shareholders in respect of the year ended 31st December, 2013.

This represents an increase of 83 percent over the amount paid for 2012.

The premium income derived from the combined – Core Life and Sika Plan businesses – totaled GH¢127,244,627, representing a growth of 27 percent.

Also, the total claim payout for the same period was GH¢68,845,574, representing 54 percent. Overall management expenses totaled GH¢21,406,152.

Sika Plan remained the market leader in the product category on the insurance industry and the most patronized within the micro-finance sector since its introduction in November 2003.

A total of GH¢161,796,239 was mobilized over a period of 10 and a half years.

SIC Life Trust Finance Limited, a subsidiary of SIC Life, is expected to provide an avenue to Sika Plan policymakers to access credit facilities to operate their businesses and enterprises.

It will offer personal, business and Sika plan loans, as well as consumer assets and equipment finance.