Business News of 2014-03-07

Gov’t suspends insurance directive to MDAs

Government has suspended its earlier directive for Ministries, Departments and Agencies (MDAs) to only purchase and renew their insurance cover with state owned insurance companies.
The directive, which was issued in December last year, received heavy backlash from players in the insurance industry, with some of them threatening to take the matter to court to seek a reversal.
According to them, some other countries implemented a retaliatory action on some Ghanaian insurance companies, following the announcement of the new directive, making it difficult for them to do business in those countries.
But a letter from the office of the President and signed by the Chief of Staff, Prosper D. K Bani, stated that the directive has been suspended.
The decision to suspend the directive was arrived at after a meeting with stakeholders in the industry.
In the interim, MDAs can buy or renew insurance cover from state or private owned insurance companies as long as they can demonstrate value for money, the letter read.