GHANAIAN Diplomat, Dr. Mohamed Ibn Chambas, has urged members of the Association of Insurance Supervisory Authorities for Developing Countries (AISADC) to lobby their respective governments to change their insurance policies in favour of the Africa Continental Free Trade Area Agreement (AfCFTA).
The primary mandate of AISADC is to set rules and regulations for the proper functioning of the respective insurance industries and to protect the interests of policyholders.
With this mandate in mind, Dr Chambas asked the association to use its power to lobby for policies in favour of the AfCFTA.
He explained that AfCFTA had the potential to boost Africa's shared prosperity by attracting investments, increasing trade, creating better jobs, reducing poverty, and redistributing wealth across the continent.
Dr Chambas said that when he delivered the keynote address at the 22nd Educational Conference of the Association of Insurers and Reinsurers of Developing countries (AIRDC) held in Accra last week, on the theme “Building resilience in the heat of a global economic tussle”.
As the Chairman of the Task Force for the ECOWAS Trade Liberalisation Scheme (ETLS), Dr Chambas said the AfCTFTA agreement was the latest initiative in Africa designed to help the continent realise its fullest potential.
It will establish the largest free trade area in the world in terms of the number of countries that have signed on. The agreement is designed to affect the over 1.3 billion people in 55 African countries with a combined GDP of US$3.4 trillion and rescue 30 million from extreme poverty.
“The AfCFTA will also build momentum for sub-regional market and trade integration processes such as the ETLS. It is hoped that all African countries will demonstrate the political will to give up some of their sovereignty for the benefits inherent in regional integration and global trade,” he stated.
Critical role
He said insurance could play the critical role it had frequently demonstrated in difficult times if the right policies were put in place.
Knowing the risks we face and creating solutions that address those risks can make this process simpler. To gain the public's trust, insurers, reinsurers and regulators must constantly build on the issue of trust,” he noted.
Dr. Chambas pointed out that given the inseparable nature of technology and innovation in the modern insurance industry, any insurer, reinsurer or regulatory body that failed to take advantage of these tools would run the risk of going out of business.
He said innovation had become indispensable, and in the insurance industry, there was no such thing as an unacceptable risk.
I have no doubt that insurers have always risen to the occasion when it matters the most.
Rising to the occasion
The Commissioner of Insurance, National Insurance Commission (NIC), Dr Justice Yaw Ofori, said many members of the association had risen to the occasion when COVID-19 brought the entire globe to a standstill.
He said the relevance of having an insurance policy for the uncertain future became more conspicuous to persons and organisations who, hitherto, were averse to insurance.
“Many have woken up to the reality that no one knows tomorrow; hence, the need to cushion us against any unforeseen occurrences,” he stated.
Appreciable growth
Dr Ofori pointed out that lives and livelihoods were affected by the pandemic as consumers started cutting back on discretionary expenditure and that, unfortunately, included insurance.
He said life and business, however, appear to be returning to normal, as the world emerged from the massive uncertainty and destruction occasioned by the pandemic.
Paradoxically, the insurance sector globally has witnessed appreciable growth in the past two years albeit the many challenges, including high claims payment,” he said.
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