Insurance companies in the country are anticipating diversity in product offerings to deepen competition in the industry with the rolling out of the new Motor Insurance Database by the National Insurance Commission.
Per the move, insurance companies are to issue electronic motor insurance stickers for clients and also input all such information unto a database provided by the regulator.
Also, premiums to be paid will be the same across board henceforth.
Though this is expected to impact on access to new clients, the Chief Operating Officer for Vanguard Assurance, has told Citi Business News the new policy will ultimately help boost insurance penetration in Ghana which currently stands at two percent.
“What is going to happen now is that strategically we just have to improve on our relationship; so now insurance service is going to be based on our relationship. Now prices are the same throughout, so what will differentiate insurance A from insurance B is the level of relationship they have with their clients and the kind of training they give their sales people; and that is going to be the differentiation. Also, the kind of added value services that will also differentiate it”.
The National Insurance Commission (NIC) says it is expecting all insurance companies to furnish it with information on all insurance policyholders by next month.
The directive follows the commencement of Motor Insurance Database, which has replaced the old insurance stickers with an electronic one, to check fake insurance stickers.