The association has cautioned that there will be a collapse of the industry as its members will not be able to pay the claims of their clients should the government go ahead and include insurance companies in the program
Seth Kobla Akwasi, the President of the association in a media press briefing, said the insurance industry must be spared.
“According to data from NIC, insurance companies invested over GH¢1.5 billion in deposits with licensed banks and money market mutual funds. Because these banks and fund management companies have also invested in the government of Ghana securities, the debt exchange will further compound the investment base of the insurance industry, since 40% of our investments are directly exposed to the government of Ghana securities an additional 10% exposure from the licensed banks and fund managers will further worsen our situation”, he said.
Stating the exclusion of insurance companies from the domestic debt exchange.
“In uncertain times like this, entities must protect their assets through insurance, which is a key risk management tool. Anything short of an exemption will have far-reaching consequences for the insurance industry and the important role they play in protecting the assets and liabilities of this country. This will also discourage the citizenry from taking up life and annuity policies”.
“In the absence of the foregoing, the insurance and reinsurance companies will be happy to cede all our claims to the financial stabilization fund.”