The Ghana Insurers Association (GIA) is defending its proposal for a 10% increase in motor insurance premiums, citing the high cost of doing business.
The proposed increment, initially set to take effect on February 1, was suspended by the National Insurance Commission (NIC).
However, industry players maintain that the adjustment is necessary to sustain operations and enhance service delivery.
According to the Chief Executive of GIA, Dr. Kingsley Kwesi Kwabahson, the association is committed to delivering quality service.
He warned that achieving this would be difficult if the premium is not increased to match the benefits provided to customers.
“We do not just talk about the 10%. We have increased the third-party property damage limit by 33.33%, and that emphasis should be made. It is in line with our objective of providing better service, moving it from GH₵6,000 to GH₵8,000.
“We thought there should be a commensurate way of charging to achieve that objective. So the emphasis should be on the better benefits we are providing to our clients rather than the small increment we are asking policyholders to pay,” he said.
He emphasized that customers must be adequately compensated, hence the need to increase premiums to cater for the extra costs.
While the increment has faced some public scrutiny, Dr. Kwabahson insists that it is a necessary step to sustain the industry.
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