The National Insurance Commission is embarking on measures to significantly reduce undercutting and ensure fair treatment of customers.
This is coming after it warned insurance companies to refrain from undercutting since it is impeding the growth of the industry.
Already, public confidence of insurance is very low
Speaking at the opening of the Weija Branch of Imperial General Insurance, Head of Core Supervision, Rita Apau, said undercutting by insurers which has affected claims payment has eroded client confidence of the insurance industry.
“As we are all undercutting is a bane in our industry and some companies succumb to pressures of competition and whittle down the price of the risk with barely enough to pass as the ‘pure risk premium’ and much less to cater for administrative expenses. With this situation, companies are unable to meet genuine claims promptly and clients become dissatisfied and end up losing confidence in insurance”.
With the introduction of the Motor Insurance Database, the Commission is determined to enforce compliance with the set market motor rates and also actively enforce strict compliance with the No Premium, No Cover Directive.
Meanwhile, Imperial General Assurance, has met the new minimum capital requirement of 50 million set by the National Insurance Commission.
This new capital, Managing Director of Imperial General Insurance, Robert Wugah, said has positioned his outfit to expand its operations across the country to serve the needs of the insuring public.
“The opening of the Weija branch of Imperial General Assurance forms part of our strategic plan to set up new branches in other locations across the country in order to bring our products and services to the doorstep of all our existing and potential clients”.
“In line with our Vision to be noted for excellence in the provision of insurance services in Ghana, Imperial Assurance is poised to serving customers across the country with enhanced and innovative insurance products”, he added.