GIZ-Ghana, on behalf of the German Federal Ministry for Economic Cooperation and Development, has awarded a 250,000 Euro grant to the National Insurance Commission (NIC).
The grant is expected to support Micro, Small, Medium Enterprises (MSMEs) and low-income households.
The cooperation with NIC, had previously seen the award of a grant of 470,000 euros for digitalisation initiatives intended to support the establishment of databases and the stability of the sector.
Mr Detlev Axel Jahn, Head of Programme, GIZ-Ghana, speaking at the signing of the grant agreement in Accra Wednesday said it marked a milestone in the efforts and commitment of the German Development Cooperation towards supporting the financial sector of Ghana.
He said through a funding from the German Federal Ministry for Economic Cooperation and Development (BMZ), Ghana’s insurance sector had received support since 2011 through capacity building activities with the development of the legal and regulatory framework for the insurance sector in line with international standards.
“GIZ also provides advisory services to the Commission on processes, tools, and components for effective monitoring for the financial and insurance markets, as well as promoting innovative digital financial services,” he added.
Mr Jahn said the impact of the COVID-19 pandemic on Ghana’s insurance market could not be underestimated and in response to the request of the NIC, GIZ on behalf of the Ministry for Economic Cooperation and Development had made the grant available to promote the resilience of micro, small and medium enterprises, and low income households.
He said the grant was expected to provide premium subsidies on hospitalization and isolation benefits to cover various medical expenses involved in the treatment of COVID-19 and extend the same benefits to the life assured in the event of death of the policyholder.
The grant, he indicated, will among other things, help in supplementing the government’s efforts in cushioning particularly the MSMEs and the vulnerable in society who may be affected by the tough measures outlined to deal with the pandemic.
Dr Justice Ofori, Commissioner of Insurance, NIC, who co-signed the agreement, said the development and promotion of insurance products for MSMEs had been key to increasing insurance coverage and penetration per the Commission’s Strategic Plan, adding that GIZ had been supportive in that regard.
He said the development, sale, and supervision of annuities were also conspicuous support received by the NIC, adding, the advent of the COVID-19 pandemic gave some credence to insurance due to uncertainties as the pandemic overwhelmed livelihoods globally.
The Commissioner commended the German Cooperation for the grant, saying, “this grant will cover various medical expenses incurred in the treatment of those affected and dependents of those policy holders in this market segment who lost their lives.
He said the support tied in with the NIC’s core mandate of protecting policyholder’s interests in respect of the provision of premium subsidies for the target market, most of whom may have been financially affected by the pandemic.
Present at the signing ceremony was Dr Kingsley Kwabahson, Chief Executive Officer, Ghana Insurance Association (GIA); Ms Angela Armah, Component Manager, FSD Insurance, GIZ-Ghana among other dignitaries.