He explained that improvement in regulatory cooperation in financial market development supervision and sharing of market information would go a long way to help build a liquid financial sector to support the country’s economy.
“We have learnt our lessons very well and, therefore, we assure all stakeholders and the Ghanaian public that the regulatory mistakes will be avoided with all the passion we can master,” Rev. Tetteh said at the 10th Cedants Award Night organised by the Ghana Reinsurance Company (Ghana Re) last Friday in Accra.
He explained that the recent reforms in the financial service space were crucial measures to strengthen and deepen the sector, restore market integrity, trust and confidence of customers, investors and the general public.
“However, regulatory oversight of these reforms will require injection of resources and capacity building of the regulators to ensure trust and confidence among various stakeholders so that their reputation can be enhanced for a renewed confidence in the financial sector.
No form of regulatory architecture could work without supportive legal framework, capacity building and injection of resources from the government,” he added.
The awardsOn the theme “The Impact of Standardisation and Supervision on the Financial Sector in Ghana,” the awards scheme was established nine years ago to show appreciation to its cedants for their diligent effort, loyalty and support to Ghana Re.
The event was also used to recognise and reward companies that made notable contributions within a particular financial year towards the growth and profitability of the company.
Among other winners, Activa International Insurance Company Ghana Limited took home the Cedant of the Year (2018) award under the General Business Category, while Met Life Insurance Company Limited won the Cedant of the Year (2018) under the Life Business Category.
Standardisation and supervision
To maintain a sound and well-regulated financial sector, the Commissioner of Insurance, Mr Justice Yaw Ofori, said there was the need for an independent body that had the capability to oversee and enforce compliance.
“With the recent events in the banking sector and its effect in the insurance, pensions, and securities sectors, the impact of standardisation and supervision is crucial to ensure growth in the financial sector. That is why, I believe that the theme for this event is apt to help stimulate growth the sector,” he added.
Ghanaian insurance industry
The Managing Director (MD) of Ghana Re, Mr George Mensah, indicated that the Ghanaian insurance industry had experienced significant growth as portrayed by the increase in brokering firms, as well as insurance companies.
“Notwithstanding that, insurance penetration remains comparatively low in Ghana,” he said.
“In a bid to increase insurance penetration and overall contribution to gross domestic product (GDP), the regulator and the government have focused on the growth of business lines such as micro insurance, mobile insurance and bancassurance,” he added..
He observed that the growth of an industry should be coupled with adherence top international best practices.
“It is worthy of note that many standards already apply in our industry. These include accounting standards, solvency standards, actuarial standards for pricing and reserving, claims-handling standards and above all underwriting standards,” he added.