Insurance Bill 2020 taken through consideration stage

Parliament has taken through the consideration stage, the Insurance Bill, 2020 targeted at increasing insurance penetration in the country which currently remains low, as the Bank of Ghana’s Financial Stability Review pegs insurance coverage at one percent of Gross Domestic Products (GDP).

The Bill, meant to replace the Insurance Act of 2006, Act 742 is expected to ensure that the insurance industry is regulated in accordance with the international framework and acceptable supervisory standards.

It also seeks to mandate insurance companies to comply with international best practices aimed at protecting premiums of customers and was laid in the House on 20th October 2020 by Finance Minister, Ken Ofori-Atta and read the second time on Monday, December 14, 2020.

Chairman of the Finance Committee of Parliament Hon. (Dr.) Mark Assibey-Yeboah presenting the Committee’s report revealed that various amendments were incorporated into the Bill by the National Insurance Commission and other stakeholders.

This, he noted, forms part of initiatives of the National Insurance Commission (NIC) under the auspices of the Ministry of Finance to grow the industry by strengthening corporate governance and increasing its accessibility most especially the informal sector.

According to the Chairman who also represents the people of New Juaben South in Parliament, the insurance industry has witnessed enormous achievements from recent developments on the international market, among them being the growing number of customers, hence the necessity of the Insurance Bill to provide a stringent regulatory framework to sustain the industry.

The Chairman further hinted that one of the major initiatives being championed by the Bill has been the need for insurance companies to ensure good corporate governance practices.

He said it was the view of the Committee that the passage of the Bill into law would serve as a check to guide insurance companies to be responsible in their investment decisions and for insurance companies to ensure good corporate governance practices.