Larry Jiagge, a former shareholder of the State Insurance Company (SIC) and a seasoned chartered insurer, has voiced his frustration over what he describes as alarming financial mismanagement at SIC and a lack of regulatory oversight by the National Insurance Commission (NIC).
Speaking on Joy FM’s Super Morning Show on Friday, February 7, Jiagge pulled back the curtain on practices he claims have undermined the company’s credibility and raised questions about its financial health.
One of the most startling revelations from Jiagge was that in 2023, SIC allegedly borrowed money to pay dividends to shareholders, creating a façade of profitability. “They went to borrow money to pay that dividend. I can tell you that for a fact; I was a shareholder then,” he disclosed. This move, he argued, masked the company’s true financial struggles, which only became apparent later. Jiagge’s account paints a picture of a company grappling with deeper issues, even as it sought to project stability to its stakeholders.
Jiagge also took aim at the NIC, accusing the regulator of failing to enforce its own rules despite repeated warnings. “There are things you can’t talk about on air. Some of these problems had the stamp of the National Insurance Commission,” he said. “They don’t enforce their own law, and I had pointed this out to them in writing all the time.” His criticism highlights a broader concern about regulatory lapses in Ghana’s insurance sector, where oversight failures can have far-reaching consequences for both companies and policyholders.
The former shareholder’s comments come amid recent turmoil at SIC, including the controversial exit of former Managing Director Hollistar Duah-Yentumi. Duah-Yentumi initially refused to hand over to her successor, James Agyenim-Boateng, and even filed a lawsuit challenging her dismissal before eventually withdrawing it. Jiagge’s revelations add another layer to the ongoing scrutiny of SIC’s leadership and governance practices.
Jiagge also recounted his efforts to sound the alarm when SIC began selling off assets, a move he found deeply concerning. He submitted a petition to the NIC, but it took the regulator a full year to respond. When the response finally came, Jiagge said it merely echoed SIC’s position, stating that shareholder approval had been obtained for the asset disposals. For Jiagge, this was a clear example of the regulator’s failure to act independently and decisively.
Calling for stricter enforcement of regulations, Jiagge warned that lax oversight could erode public trust in the insurance sector. “The regulator must adhere to its own laws,” he insisted, emphasizing the need for transparency and accountability to restore confidence in SIC and similar institutions.
Jiagge’s revelations underscore the challenges facing Ghana’s insurance industry, where financial mismanagement and regulatory weaknesses can jeopardize the stability of key players. As SIC grapples with internal and external scrutiny, his call for stronger oversight serves as a reminder of the importance of robust governance in safeguarding the interests of shareholders, policyholders, and the public at large.
The story of SIC’s alleged financial missteps and the NIC’s inaction is not just about one company or regulator—it’s a cautionary tale about the consequences of neglecting accountability in critical sectors of the economy. Whether Jiagge’s revelations will spur meaningful reform remains to be seen, but they have undoubtedly sparked a necessary conversation about the state of Ghana’s insurance industry.
