The Acting Commissioner of Insurance, Dr Abiba Zakariah, has reiterated her strong stance on curbing premium undercutting, which continues to hinder growth in the country’s insurance penetration rate.

She lamented the increasing compromises by some industry players on ethical practices, stressing that ethical integrity is non-negotiable.

According to her, a disregard for ethical standards amounts to a “race to the bottom,” with the potential to derail the industry’s progress.

Dr Abiba Zakariah reaffirmed the regulator’s unwavering commitment to tackling the menace decisively.

Christopher Boadi Mensah heads National Insurance Commission Board

She made these remarks when the Committee on Premium Undercutting and Unethical Practices, chaired by Ivan Avereyireh, a former President of the Ghana Insurers Association (GIA), officially presented its report and recommendations to her on August 20, 2025.

Ivan Avereyireh on his part highlighted key portions of the report, noting that sanctions must apply to all culprits without exception.

He also proposed that "a Memorandum of Understanding (MoU) be signed by all stakeholders, including shareholders, Boards of Directors, and Chief Executive Officers, as a collective commitment to adhere strictly to agreed standards."

Failure to do so, he stressed, should trigger the “ear-closed” enforcement of sanctions.

Meanwhile, the report underscored the urgent need for enhanced regulatory oversight, greater accountability, and improved transparency to build trust and safeguard the interests of insurance policyholders.

Among its recommendations, the Committee called for:

• Strict enforcement of claims payment requirements

• Enhancing life insurance benefits

• Preventing unfair pricing

• Promoting fair competition

• Penalising unethical practices

• Offering alternative investment options

• Holding all actors accountable, including leadership

These measures, members explained, align with one of the regulator’s three strategic pillars; sanitising the insurance market to ensure fairness and transparency.

The Committee, constituted in March this year, comprises representatives from all key industry stakeholders, including; Dr Kwaku Appietu-Ankrah of Ghana Re PLC; Nana Dufie Amakye Ansah of the Insurance Brokers Association of Ghana (IBAG); George Quayson Otoo, Eugenia Apeagyei, Kwadwo Nkansah Esq., and Frederick Boakye-Yiadom, all from the NIC; Nda Ahale Polley, Eric Ato Botchway, Dr Kingsley Kwesi Kwabahson, and Mercy Naa Koshie Boampong from the Ghana Insurers Association (GIA); Elsy Adadey of the Chartered Insurance Institute of Ghana (CIIG); Stephen Tetteh Terkpetey and Charles Kofi Adjei-Mensah from the Actuarial Society of Ghana (ASG); and Stephen Kwarteng Yeboah from IBAG.

'Let's challenge ourselves to change the insurance market' – Dr. Abiba Zakariah

During the presentation, members pledged their full commitment to upholding ethical standards and actively combating premium undercutting through all available means.

Dr Zakariah assured the Committee that the report would be thoroughly reviewed, adding that implementation would follow after due consideration.

MA