BoG calls for collaboration between banks and insurance companies

The First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari has called for collaboration between banks and insurance companies in the country.

According to him, the convergence of the two financial institutions will help the industry succeed and also make it easier to sign up people for insurance policies.

“In practice, the seeming convergence of the banking and insurance cannot be pursued for bancassurance perspective alone as there are other potentials for emergence of assured finance or assured bank where insurance companies are also allowed to sell banking products and services on behalf of their partner banks. Either existing agency banking models I’m sure will find space for this innovation should market force its drive to set an initiative”, he explained.

However, he said the convergence of the two institutions will be a reality for which stakeholders must prepare to embrace it.

Dr. Opoku-Afari further stated that although there will be some challenges with the convergence, there is the need for regulators to ensure that the two institutions standards keep pace with the developments in risk managements for the effective and interdependence on the sectors.

The First Deputy Governor of the Bank of Ghana said this at the 3rd Annual Bancassurance & Alternative Distribution Channels Conference Ghana 2017 at the Peduase Valley Resort on Thursday, September 14. The theme for the program was "Innovation: Reinventing Insurance for the Digital Generation".