Insurance industry to see consolidations

A.J. Kruger, Chief Executive Officer of Metropolitan Life Insurance Company, has said the number of insurance companies and health insurance schemes in the country will reduce due to the new capital requirement and regulations set by respective regulators.

The National Insurance Commission has increased the new capital requirement of insurance companies from GH¢5million to GH¢15million with a deadline of December 2015, while the National Health Insurance Authority (NHIA) has directed all mutual health insurance schemes to convert to commercial schemes by September 2015.

“The December 2015 deadline for insurance companies to recapitalise and the September deadline by the NHIA for mutual schemes to convert to commercial schemes will see the number of companies operating in this space certainly reduce, as not all of the current players will meet the new requirements,” he said.

Mr. Kruger, who is also the Executive Director of Metropolitan Health and Metropolitan Pensions, noted that the new capital and solvency requirements by the regulators will further enhance the various industries and ensure t only strong players survive -- and Metropolitan is clearly one of such.

“Metropolitan has already met the new NIC requirements though it is in December, and is firmly on course to meet the NHIA new requirements as well.

“The fact that Metropolitan is on course to meet these requirements makes us one of the strongest players in the financial services industry, offering complete financial wellness solutions that our clients can trust,” Mr. Kruger stated.

Speaking to insurance brokers at a meeting in Accra, Mr. Kruger underscored the need for collaborations as part of the growth strategy for all three business sectors.

“This is the reason we have assembled to brainstorm to fashion a path in order to strengthen our position on the Ghanaian market while offering the best solutions for financial well-being.”

He added that Metropolitan is poised to offer the best in financial services solutions to the people of Ghana.

“We understand the needs of our clients and know the important role that brokers play for employers as advisors in acquiring insurance cover. Our aim is to strengthen the relationship with our brokers to offer financial wellness solutions to their clients, underpinned by innovation and trustworthiness.”

The Metropolitan companies in Ghana are subsidiaries of MMI, which is the third-largest insurance-based financial services group listed on the Johannesburg Stock Exchange (JSE), South Africa, with a market capitalisation in excess of US$4bn.

The Metropolitan brand has been in the business of financial solutions for over 117 years, and is endorsed by over 10 million clients around the world.

MMI, which was created in December 2010 from the merger of Metropolitan Holdings and the Momentum Group, is doing business in 12 African countries outside South Africa as well as the United Kingdom, Indonesia and India.

MMI’s core businesses are long- and short-term insurance, asset management, savings, investment, healthcare administration, health risk management, employee benefits and rewards programmes.

These solutions are provided to all market segments through operating brands Metropolitan and Momentum.