Ethical integrity is non-negotiable – Commissioner of Insurance to Insurers and Brokers

Dr. Abiba Zakariah, Ghana’s Commissioner of Insurance (ag), has reiterated her strong position on the insurance industry’s resolve to curb the menace of premium undercutting which has been a spoke in the wheels of the growth of the insurance penetration rate.

She bemoaned the increasing compromises by some Industry players on ethical practices within the insurance industry. The Commissioner who has always been a strong advocate for ethical practices emphasised that ethical integrity is non-negotiable as it smacks of a race to the bottom that has the potential of drowning the industry’s progress thus reaffirming the regulator’s’ unwavering commitment to nipping the phenomenon in the bud.

Dr. Zakariah made these remarks when the Committee on Premium Undercutting and Unethical Practices, chaired by Mr. Ivan Avereyireh, a former President of the Ghana Insurers Association (GIA) officially presented the Committee’s report and recommendations to her.

Mr. Avereyireh touched briefly on some salient portions of the contents of the report intimating that sanctions should apply to everyone found culpable, and proposed that a Memorandum of Understanding (MOU) be signed by all parties, including shareholders, Boards of Directors and Chief Executive Officers.

This would be a shared commitment to adhere strictly to the MoU failure which would result in an ‘ear-closed’ applications of what has been agreed on. The presentation underscored the critical need for enhanced regulatory oversight, increased accountability, and greater transparency to foster trust and safeguard the interests of insurance policyholders.

The report summarises the key recommendations and commitments made during the session.

The Committee members highlighted recommended initiatives to improve the growth of the insurance industry, among which are:

• Enforcing claims payment requirements
• Enhancing life insurance benefits
• Preventing unfair pricing
• Promoting fair competition
• Penalising players for unethical practices
• Offering alternative investment options
• Holding everyone accountable, including leadership

The goal is to create a fair and transparent insurance industry through sanitising the market which is one of the three (3) strategic pillars of the new Management of the regulator.

The Committee was constituted in March this year and comprises representatives of all key industry stakeholders. They are:

• Kwaku Appietu-Ankrah, Ghana Re PLC
• Nana Dufie Amakye Ansah (Mrs.) Insurance Brokers Association of Ghana (IBAG),
• George Quayson Otoo, NIC
• Eugenia Apeagyei, NIC
• Kwadwo Nkansah Esq, NIC
• Nda Ahale Polley, GIA
• Elsy Adadey, Chartered Insurance Institute of Ghana (CIIG)
• Eric Ato Botchway, GIA
• Stephen Tetteh Terkpetey (Actuarial Society of Ghana (ASG)
• Kingsley Kwesi Kwabahson, GIA
• Frederick Boakye-Yiadom, NIC
• Stephen Kwarteng Yeboah, IBAG
• Mercy Naa Koshie Boampong, GIA
• Charles Kofi Adjei-Mensah, ASG

During the presentation of the report, Members pledged their relentless commitment to upholding ethical standards and actively combating the menace of premium undercutting through all available means.

Dr. Zakariah assured the Committee that the report would be thoroughly studied, and implementation would commence following due consideration.

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