The National Insurance Commission (NIC) is calling on financial Non – Governmental Organizations (NGO’s) operating in rural areas to apply for licenses to add Micro insurance to their operations. According to the NIC that is one way to introduce insurance to the rural dwellers since the traditional insurance companies are concentrated in the urban areas.
NIC is actively spearheading the development of micro insurance in Ghana, particularly through the development of an appropriate regulatory framework for micro insurance product.
Speaking to Citi Business news Commissioner of Insurance at the NIC Lydia Bawa said the unavailability of insurance products in such areas means the agricultural sector which sustains the economy is deprived of industry’s services.
“That is why I do not want us to leave the micro insurance at the insurance company’s level, I want NGO’s operating in the rural areas to register and we will license them so that they can reach the rural people.”
We have something that we call financial inclusion, reaching the underserved but you see with insurance for instance we look it as if it’s for the middle class and the middle upper class who need insurance but we are trying to bring to the level of low income and that is what micro insurance is all about. -The Insurance Commissioner said
The policies for micro insurance is said to be very simple ones and the premiums very small premiums with claims procedures very simplified. Ghana has become a model when it comes to micro insurance within the West African sub region.
“For now micro insurance is being sold to the market women in our urban centres but as a commissioner I want the a situation where the farmer in the rural area can buy insurance be it life, health or whatever kind of insurance to insure their properties as well.”
Therefore the commission is going to take insurance down to the rural level so that everybody can have the chance to access insurance which is important to our development.
SOURCE: Spy Ghana
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