Insurance Brokers caution on commercial implications of coronavirus

Mr. Shaibu Ali, the Vice President of the Insurance Brokers Association of Ghana, has urged brokers to carefully assess the commercial implications of the COVID-19 pandemic on their clients to protect themselves from the risk of claims.

Mr Ali, who is also the CEO of KEK Reinsurance Brokers (Africa) Limited, said Insurance brokers were already inundated with queries from their clients relating to the impact.

"The Covid-19 pandemic brings insurance brokers’ duties and obligations into sharp focus, both in terms of dealing with existing queries from their clients and the advice they provide on future renewals," he said.

Mr Ali said this at the 4th Webinar series on the theme: “Effects of Covid-19 on Corporate Ghana- the Insurance Industry” which was organized by Krif Ghana Limited publishers of Integrity Magazine in Accra.

The virtual event brought on board seasoned insurers across the country, who touched on various angles of the insurance sector, with a clarion call on Ghanaians to "be interested in insurance".

He noted that: "To protect themselves from the risk of claims, brokers need to carefully consider the practical and commercial implications of the pandemic on their clients.

“In addition to the challenges insurance brokers may face in dealing with insurance claims, they should also be mindful of potential risks in advising their clients moving forward."

He said from a practical perspective, most insurance brokers, insurers and their clients were likely to face a sustained period of home and remote working which will inevitably lead to a period of adjustment for the parties involved.

Madam Ernestina Abeh, Managing Director of Enterprise Insurance Company Limited, in her analysis, said the country's general insurance industry was not plagued with "large claims from the pandemic" as compared to western markets.

She explained that the pandemic had fast-tracked the move of insurance companies in going digital and the reduction in operational cost.

Madam Abeh said: "The lockdown in Ghana pushed companies to provide employees with the requisite tools such as laptops, Internet Routers as well as equip them with corporate level communication and collaboration platforms (Microsoft Teams, Zoom, Skype, etc.) to work remotely.

“The operations of insurance companies to be digitalized and has directly affected the operational cost of companies as Utility bills, Motor running cost and stationery in the industry in a positive manner."

The Reverend Kennedy Okosun, Chief Executive Officer of Krif Ghana Limited, tasked the insurance sector players to offer packages that would protect individuals and businesses from losses in these difficult times.

Rev. Okosun, who is also the Editor of the Integrity Magazine, urged insurance companies to do more in building trust with their stakeholders, stressing that the world economy was a downward spiral since the pandemic broke out and as usual the insurance industry in Ghana was impacted adversely.

Other speakers includes: Mr. Michael Kofi Andoh, Deputy Commissioner, National Insurance Commission; Mr. Edward Forkuo Kyei, CEO, GLICO Group; and Mrs. Nancy Ampah, CEO, Nationwide Medical Insurance.

Others were: Mr. Adedayo Arowojolu, Managing Director, WAPIC Insurance Ghana.