Captains of the insurance industry have been reminded that the discovery of oil and gas in the country has made it imperative for insurance companies to build adequate capacity and raise enough capital to enable the insurance companies to accept larger volumes of the businesses likely to flow in.
The Managing Director of the Ghana Reinsurance Company, Mr William Agbenyega, made this point at the first Ghana Reinsurance Cedant Awards Night during which loyal customers of Ghana Reinsurance Company were recognized and rewarded for their immense contribution to the growth of the Company.
A statement issued in Accra on Monday, said Mr Agbenyega reminded the insurance companies that Ghana Reinsurance Company, which he described as a reliable re-insurer of choice, had the capacity and technical know-how to accept what the insurance companies had been ceding to Ghana Reinsurance Company.
He, therefore, called on the insurance companies and Ghana Reinsurance Company to inform partnership to exploit the benefits that would accrue from the discovery of oil and gas and contribute their quota to the development of the Ghanaian economy.
According to Mr Agbenyega, premium was the life blood of the insurance business, which must be paid promptly to keep the industry running and called on all parties to discharge their duties to prevent the industry for collapsing.
In his presentation, the guest speaker, Dr Albert Gemegah, noted that insurance and reinsurance services formed a very important segment of the economy of any country, adding that partnerships should be of interest to all because they were important ways of mobilizing domestic capital for long-term investment.
He, therefore, advised the direct insurance companies operating in the country to reinsure locally in the interest of deepening the insurance market, stemming foreign capital flight and improving the country's economy as a whole.
Dr Gemegah, who is a Senior Lecturer at the University of Ghana Business School, also called on all chief executives of insurance companies to establish and maintain strategic partnerships, alliances and networks between the companies and the re-insurers who would assist them to outline and utilize the symbiotic strength of both parties in pursuit of market growth.
In his welcoming address, the Deputy Managing Director of Ghana Reinsurance Company, Gustav Siale explained that the management of the Company instituted the awards scheme to motivate loyal and dependable business partners who had contributed immensely to the growth of the Company.
The Chairman of the Board of Ghana Reinsurance Company, Mr Lionel Mobilia, said it was essential that in the coming years the insurance industry would introduce innovative products that would meet customer needs.
He said this was only possible if the relationship between insurers and re-insurers remained strong.
At the end of the Night, Metropolitan Insurance Company won the Star Award of 10,000 dollars in the general business category with Prudential and SIC placing second and third with 5,000 and 3,000 dollars respectively for their efforts.
In the Life Business Category, SIC Life took the first prize of 5,000 dollars followed by Star Life 3,000 dollars and Ghana Union Life 2,000 dollars.