GIZ-Ghana, on behalf of the German Federal Ministry for Economic Cooperation and Development, has awarded a grant of € 250,000 to the National Insurance Commission (NIC).
The grant is expected to support micro, small and medium enterprises (MSMEs) and low income households.
Cooperation with the NIC had previously seen the award of a grant of € 470,000 for digitization initiatives to support the establishment of databases and the stability of the sector.
Mr. Detlev Axel Jahn, Program Manager, GIZ-Ghana, speaking at the signing of the grant agreement in Accra on Wednesday, said this marks an important milestone in German Cooperation’s efforts and commitment development to support Ghana’s financial sector.
He said that thanks to funding from the German Federal Ministry for Economic Cooperation and Development (BMZ), Ghana’s insurance sector has received support since 2011 through capacity building activities with the development of the legal framework and regulation of the insurance sector in accordance with international standards.
“GIZ also provides advisory services to the Commission on the processes, tools and components for effective supervision of financial and insurance markets, as well as the promotion of innovative digital financial services,” he added.
Mr Jahn said the impact of the COVID-19 pandemic on the Ghanaian insurance market cannot be underestimated and that in response to a request from NIC, GIZ, on behalf of the Ministry of Economic Cooperation and Development, made the grant available to promote the resilience of micro, small and medium enterprises and low-income households.
He said the grant was to provide premium subsidies on hospitalization and isolation benefits to cover various medical expenses involved in treating COVID-19 and extend the same benefits to insured life in the event of the death of the patient. ‘assured.
The grant, he said, will, among other things, help complement government efforts to cushion especially MSMEs and vulnerable people in society who may be affected by the stringent measures outlined to deal with the pandemic.
Dr Justice Ofori, Insurance Commissioner, NIC, who co-signed the agreement, said developing and promoting insurance products for MSMEs has been key to increasing insurance coverage and penetration. in accordance with the strategic plan of the Commission, adding that GIZ had given its support to this matter.
He said the development, sale and supervision of annuities was also clear support received by the NIC, adding that the advent of the COVID-19 pandemic has given insurance some credibility due to the uncertainties then. that the pandemic has overwhelmed livelihoods around the world.
The Commissioner praised the German cooperation for the grant, saying: “This grant will cover various medical costs incurred in the treatment of affected people and dependents of insureds in this market segment who have lost their lives.
He said the support was tied to the NIC’s core mandate of protecting the interests of policyholders in providing premium subsidies for the target market, most of which may have been financially affected by the pandemic.
Dr Kingsley Kwabahson, Managing Director of the Ghana Insurance Association (GIA) was present at the signing ceremony; Ms. Angela Armah, Component Manager, FSD Insurance, GIZ-Ghana, among other dignitaries.