Coronavirus: Insurance industry must offer financial stability – Rev. Okosun

The Reverend Kennedy Okosun, the Chief Executive Officer of Krif Ghana Limited, has said a well-developed insurance industry is key in efforts to improve the stability of the financial markets.

He said the insurance sector must offer packages that would protect individuals and businesses from losses, especially in the COVID-19 challenging times.

“In one breath, suffice it to say that in these COVID-19 challenging times, Insurance is best described as compulsory".

Rev. Okosun, who is also the Editor of the Integrity Magazine, urged insurance companies to do more in building trust with its stakeholders, stressing that the world economy had seen a downward spiral since the outbreak of the pandemic, adding that the Ghanaian insurance industry had not been spared the negative impact.

Rev. Okosun was speaking 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, the 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".

The Krif Ghana CEO said there were fears that the COVID-19 situation could create liquidity strains even for insurers. “This could just be the catalyst for the insurance industry to cash in as the world is at the mercy of natural disasters and accidents". "It is the view of Integrity Magazine that the insurance industry could wield more money than the banks if the public understood properly and applied the services of insurers especially during the coronavirus pandemic, thus ensuring that they were covered in any eventuality. "This Integrity Magazine Webinar is creating a platform for a discourse on maintaining the fiduciary relationship between the insured public and their insurers. How do we help insurers build back the trust, so we do not keep hearing people say, they were quick to take my money, but now that they have to pay back, they are dragging their feet." Speakers included; Mr. Michael Kofi Andoh, Deputy Commissioner, National Insurance Commission; Madam Ernestina Abeh, Managing Director of Enterprise Insurance Company Limited; 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; and Mr. Shaibu Ali, Vice President of the Insurance Brokers Association of Ghana who is also the CEO of KEK Reinsurance Brokers (Africa) Limited. On his part, Mr. Edward Forkuo Kyei, CEO, explained that despite the numerous challenges the pandemic had generated, insurance companies could still take advantage of the opportunities amidst the difficulties.4

He said COVID-19 had opened the doors for the use of various technologies to conduct virtual meetings, which are as effective as face-to-face meetings. "These turbulent times may be the turning point that will drive transformational change across the insurance industry.

“Those who are able to respond at pace to this changing environment, who take a customer-first attitude, and who see this as an opportunity to reset and fundamentally rethink how they do business, will find themselves emerging from strength when the dust settles," he said.

Mr Kyei, who is the CEO of GLICO Group, urged insurance companies to consider diversifying into establishing subsidiary vehicle repairs companies to attend to their policyholders’ vehicles.

By so doing, they would retain control of the repairs of customers’ vehicles and maintain a high level of service delivery come rain or shine”.