Support NHIS, Minister urges insurance companies

Accra, Feb. 8, GNA-Insurance companies have been asked to identify themselves with the National Health Insurance Scheme (NHIS) by supporting it in order to make the scheme beneficial to all. "It is the wish of government that all insurance companies identify themselves with the scheme and support it in order to make the scheme beneficial to the people of Ghana."

Finance Minister, Mr. Kwadwo Baah-Wiredu noted that the scheme was attracting many sections of the population stressing that, "NHIS is now being seen as a better alternative to erstwhile cash and carry system."

Mr Baaah-Wiredu made these remarks in a speech read on his behalf at the launch of Donewell Family Funeral Policy in Accra on Thursday. The policy is designed to cushion the financial impact on the death of a family member.

The Minister commended the insurance industry for providing protection to business entrepreneurs who have now ventured into areas they would not have exposed their capital to. Mr Baah-Wiredu further challenged insurance companies to come out with more innovative products that would encompass the informal sector in their operations.

Mr. Kwadwo Baah-Wiredu noted that some insurance companies were selling same products stressing that nothing or not much has been done in coming out with products as some banks were doing and that had left out the informal sector.

The Minister however, lamented over some insurance company's agents who sold outrageous packages in their zeal to sell to the public. He urged companies to give priority to training, noting that "after all a well trained agent will be confident and able to sell better." He drew the companies' attention to the passage of the Insurance Law 2006 saying, the law had a provision for the separation of life business and general business.

"We hope this would help insurers concentrate more properly on the life business, which has hitherto lagged behind general business. The Minister called on the insurance industry to continue to contribute their role in the development of securities and capital markets, growth of bonds, long term government securities and corporate equity market large through life and pension policies.

"Let me charge insurance companies to design more products, especially assurance products, which are easily accessible and affordable to bring on board huge portion of our population which is still ignorant of the inherent benefits of insuring themselves and their dependents," he said. O8 Feb.07