The Insurance Brokers Association of Ghana (IBAG) is considering establishing an upstream energy pool for brokers, similar to the Ghana Oil and Gas Insurance Pool (GOGIP), which is run by a consortium of primary insurance underwriting companies domiciled in the country.
IBAG is seeking to build consensus among its members and possibly seek amendment to the Petroleum (Local Content and Local Participation) Regulations 2021, L.I.2435, to have an IBAG energy pool recognised as a pool broker for the upstream oil and gas business.
Announcing this in Accra last week at his investiture as the new IBAG President, Stephen Kwarteng Yeboah stated that the approach represents the best way to ensure that all brokers benefit from the blessing of Ghana’s upstream oil resources.
This forms a key initiative IBAG intends to execute going forward, as revealed by its new President, who is the Chief Executive Officer (CEO) of Olea M&G Brokers. He will lead IBAG for the next two years, with the possibility of a subsequent two-year second term, after serving as Vice President to his predecessor, Shaibu Ali, who served as President for two consecutive two-year terms.
His investiture was witnessed by the Insurance Commissioner, Dr Abiba Zakariah, a representative of the Ministry of Finance, Nana Dankawoso, who was the special guest for the event, as well as past insurance commissioners, the presidents of the Ghana Insurance Association (GIA) and the Chartered Insurance Institute of Ghana (CIIG) and other insurance industry dignitaries.
The new IBAG President revealed that during his tenure, the association would prioritise four thematic areas. These include creating a better enabling environment and inclusive opportunities for insurance brokers, building the capacity of brokers to deliver better services to clients, collaborating with industry stakeholders to promote a better insurance industry relevant to national development, and resourcing the secretariat to provide value-addition services to members.
He also outlined specific actions that the association would take to achieve those goals, one of which would be the creation of an Upstream Energy Pool for brokers, similar to the underwriters’ GOGIP.
Another area of focus will be building the professional capacities of brokers through practical training offered by experienced brokers both within and outside the country.
“We shall collaborate with the Ghana Insurance University College (GIICU) to roll out broker-focused practical courses affordable to members,” he assured.
He also plans to work with the National Insurance Commission (NIC), as the insurance industry regulator, to create a better regulatory framework for the broking business.
“The incessant requirements to obtain multiple licences for insurance broking business has been a nuisance to our industry,” he lamented, before enthusing that the NIC has already reached out to him to send a paper on how to ensure that the commission remains the only regulator of insurance broking in Ghana.
He further noted that the Ministry of Finance plans to implement a comprehensive review of the regulatory framework of insurance business in Ghana. Of particular concern to brokers is the requirement that the NIC license them to work on life and non-life insurances, but they must apply for separate licensing from the National Health Insurance Authority to sell medical insurance.
Another planned initiative by IBAG is to work with the NIC to come up with guidelines on the best practices in engaging and disengaging brokers in Ghana, as well as other market rules.
Finally, Mr Yeboah promised that IBAG will start the process of developing its newly acquired property at Kanda in Accra, to house its secretariat and the GIICU, while resourcing the secretariat to provide the support needed to prosecute the association’s agenda.