TO ANNOUNCE THE RATING STATUS OF GHANA REINSURANCE COMPANY LIMITED ON WEDNESDAY 15TH FEBRUARY, 2006
Madam Chairperson, Commissioner of Insurance, Directors of Ghana Re Board, CEOS of Insurance firms, media and Pressmen, Distinguished invited guests, Ladies and Gentlemen
It gives me much joy to be invited as the Guest of Honour for this all-important occasion to formally announce the rating status of Ghana Reinsurance Company.
Insurance and reinsurance form a very important segment of the economy of any country and due to their peculiar nature, governments everywhere through the regulatory authority diligently monitor the activities and operations of insurers and reinsurers. We are all aware that premiums are paid upfront upon the promise that if the insured event occurs the policy holder would be compensated. It is therefore of interest to all governments to ensure that the promise is kept. Aside from this, insurance and reinsurance business should be of interest to all governments because it is one of the important ways of mobilizing domestic capital.
With the on-going road and other infrastructure projects as well as investments in the mining sector involving substantial foreign currency, the need for insurance and reinsurance services to cover such projects cannot be overemphasized.
It is however often contended by some of our development partners on such projects that the insurance and reinsurance companies operating in Ghana do not have the necessary expertise and capacity to underwrite such risks. This situation has been of grave concern to the Government since scarce foreign exchange would have to be expanded in the purchase of insurance and reinsurance services from outside. These hard currencies that would have been retained and invested in the country would have been lost.
In the light of this rating status achieved by Ghana Reinsurance Company, there would not be any excuse again for any company operating in the country to resort to purchasing reinsurance services outside of this country without first exhausting the national capacity. Insurance companies should now be comforted that Ghana Reinsurance Company is a tested and dependable security they could do business with and can count on its claim paying ability.
My advice to the Board, Management and staff of Ghana Reinsurance Company is that they should not be complacent but should build upon this initial achievement. They should work harder to improve on or at least maintain the rating status achieved. It should also spur management on to engage in aggressive marketing both locally and internationally to improve on the bottom line for the sole shareholder, the Government of Ghana.
The rating status awarded to Ghana Reinsurance Company is commendable. This is an achievement for which the Board Management and staff should be congratulated.
In conclusion I wish to call upon the regulators to insist that insurance companies operating in the country deal with reliable reinsurance companies as I am told it is the practice of regulators in other insurance markets on the continent.
May I once again take this opportunity to congratulate the Board, Management and staff for this achievement which they must strive to maintain.
Thank you.