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Business News Tue, 16 Oct 2018

Reinsurers must guard against industry crisis – Alhassan Andani

Managing Director of Stanbic Bank, Alhassan Andani is urging the Ghana Reinsurance Company to enforce proper data management if it is to secure the industry.

According to him, for a resilient and robust reinsurance industry, every loophole and mystery must be solved and accounted for and brought to book so as to prevent the current situation experienced by the banking sector.

“The current state of the banking industry is all about risk being of people, it is not the processes, procedures and documents. It means nothing if people who are entrusted with it do not observe, enforce and penalize for the wrong that is done” he stated.

Mr. Andani made the remarks at the Ghana Reinsurance Company's 9th Cedants’ awards night where he was the Guest Speaker.

Meanwhile speaking to Citi Business News at the same event, Managing Director of the Ghana Reinsurance Company, George Mensah said the industry may not face major challenges should the minimum capital be raised by the end of the year as it is well sanitized and ready for the new requirement from its regulator, the National Insurance Commission (NIC).

“I don’t foresee a widespread of insurance companies having difficulty by way of lack of enterprise risk management within the institutions. Not as much as we have seen in the banking sector” he assured.

“That said, there are some insurance companies that I believe may find themselves wanting when it comes to the minimum capitalization that the insurance commission is talking about” he admitted.

At the Ninth Cedants’ Awards, the cedant of the year (2017) award for general business went to Hollard Ghana whilst that for life business went to Met Life insurance company limited.

KEK reinsurance brokers limited however won the special award for broker business.

The ceremony was themed “The Advent of Enterprise Risk Management and its impact on the Financial Sector”.

Source: citibusinessnews.com