Enhancing market innovations in the insurance industry
Micheal Kofi Andoh, Acting Commissioner of Insurance, National Insurance Commission (NIC), says the Commission is working to create the enabling environment to support market innovations and integration of technology into the industry’s operations.
He said promoting the deployment of technology and innovation is a key pillar in the current strategic plan of the NIC to help spur growth in the sector.
Mr Andoh said this at the 2nd Annual Tech and Innovation Forum for the Insurance Industry, which brought together innovators and participants from UNDP, GIZ, Ghana Insurers Association, FSD Africa, Fintech and Insurtech sectors and the business communities.
The Forum had become a platform for industry stakeholders to foster open dialogue and explore innovative pathways for the industry and discuss key innovative trends and challenges.
The Acting Commissioner said the NIC had establish digital databases to support the underwriting of key compulsory insurances.
“The Motor Insurance Database (MID) has been a groundbreaking success in revolutionising motor insurance business in the country. The Marine and Aviation Insurance Database is also nearing completion and is expected to be operational this year,” he said.
These databases, he said, were aimed at promoting fair market conduct and ease compliance with compulsory insurances and in making innovation
The NIC had issued its Regulatory Sandbox directive, which aligns with the provisions on innovative insurance licenses in the Insurance Act 2021.
Regulatory sandboxes are valuable tools used globally to assess the impact, risks, and nuances associated with new technologies and innovations without disrupting the market and by leveraging the sandbox, regulators could make informed decisions about the viability and potential benefits of innovative solutions.
The first cohort of five Insurtechs had been admitted into the Ghana sandbox, in a controlled environment, to test innovative insurance solutions with support from FSD Africa, a specialist development agency established in 2012 by the UK Government to make finance work for Africa’s future.
These insurtechs issued with the regulatory sandbox licenses to pilot their new services are Figtech Limited, Moovon Insure, Holland Insurance and ETAP, Trade Guarantee Limited (TGL) and Red Pear Limited.
Mr Elias Omondi, Principal for Innovation and Bimalab Lead at FSD Africa, commended Ghana’s Insurance regulator and industry for setting the pace for the continent on matters of innovation, adding that insurance was a great way to build resilience for businesses and lives yet in Africa, insurance services remained a preserve of just a few often due to low coverage and prohibitive costs.
“Innovations such as insurtechs are dealing with these challenges by offering exciting modern products, expanding coverage to underserved communities and lowering service costs. A supportive regulatory regime is key for this to happen, and we laud NIC for being strongly pro-innovative,” he said.
Dr Kenneth Ashigbey, Chief Executive Officer, Ghana Chamber of Telecommunications, in an interview with the Ghana News Agency, said the sandbox innovation would ‘push’ insurance companies from being conservative to doing experimentations within their confines and that would ensure customer protection, data protection and other protective innovations.
“Allowing them to innovate and come up with solutions is the best. I’m happy about the fact that the sandbox is not only open to just Ghanaian enterprises, but other enterprises from other African countries coming into the space. They will develop products that will not only be for Ghana and Africa,” he said.