UNDP Raises Concerns Over Limited Non-Life Insurance Solutions in Ghana
The United Nations Development Programme’s Insurance and Risk Finance Facility (UNDPsIRFF) has raised concerns about Ghana’s neglect of inclusive non-life insurance solutions, despite notable advancements in health and life insurance. According to the facility, while health and life insurance products have reached the poor and vulnerable, access to inclusive non-life insurance remains limited.
These concerns were discussed during the Non-Life Actuarial Capacity Development (NACDev) programme, held in Accra and organized by the UNDPsIRFF in collaboration with the Actuarial Society of Ghana (ASG) and the Private Health Insurers Association Ghana (PHIA-G). The event is part of the UNDP-Milliman-Global Actuarial Initiative (GAIN).
Need for Actuarial Functions
Speaking at the event, Dr. Amina Sammo, Coordinator of the IRFF at the UNDP, highlighted the urgent need to establish actuarial functions within Ghana’s non-life insurance sector. She commended private insurers for supporting the GAIN programme, which aims to build actuarial capacity by encouraging insurers to establish actuarial units.
Dr. Sammo noted significant progress since the UNDP began implementing the GAIN programme in 2022, emphasizing the importance of addressing industry inefficiencies and supporting service providers to enhance their operations.
Strengthening Actuarial Capacity
Mr. Mark Larbi Henaku, CEO of the Actuarial Society of Ghana (ASG), outlined the ASG’s mandate to educate, train, and regulate the actuarial profession in Ghana. He revealed that the society, in partnership with Milliman-GAIN, has trained National Service personnel with expertise in actuarial science, statistics, and mathematics to manage actuarial units within insurance companies.
Mr. Henaku encouraged insurers to establish these units to ensure compliance with actuarial regulations, which he described as critical for building a strong foundation for the industry.
Stakeholder Support
A representative from the National Health Insurance Authority (NHIA) lauded the efforts of the UNDPsIRFF and ASG, drawing comparisons to South Africa’s well-developed actuarial sector and expressing optimism about Ghana’s potential in this field.
The PHIA-G pledged its continued support and collaboration with the ASG. The association committed to engaging with training manuals and programmes to ensure improved compliance and industry development.
Way Forward
The UNDPsIRFF’s push for inclusive non-life insurance solutions underscores the need for Ghana to address gaps in the insurance sector. By enhancing actuarial capacity and compliance, the country is poised to create a more robust and inclusive insurance framework that caters to all segments of society.
