Ghana's National Insurance Commission (NIC) has granted its approval to the first cohort of five InsurTechs to enter the regulatory sandbox to test innovative insurance solutions in a controlled environment.
The InsurTechs issued with the regulatory sandbox licences are Figtech; Moovon Insure, Holland Insurance and ETAP, Trade Guarantee (TGL), and Red Pear, NIC said in a statement posted on its website.
The regulatory sandbox has the support of FSD Africa, a specialist development agency established in 2012 by the UK government to make finance work for Africa’s future.
Mr Michael Kofi Andoh, NIC acting commissioner, said the Commission is working to create the enabling environment to support market innovations and integration of technology into the industry’s operations. He said promoting the deployment of technology and innovation is a key pillar in the current strategic plan of the NIC to help spur growth in the sector.
Mr Andoh made the remarks at the 2nd Annual Tech and Innovation Forum for the Insurance Industry, held earlier this month, which brought together innovators and participants from the Ghana Insurers Association, FSD Africa, FinTech and InsurTech sectors, and the business communities as well the UNDP and the GIZ who are development partners
Digital databases
Mr Andoh said the NIC had established digital databases to support the underwriting of key compulsory insurances.
“The Motor Insurance Database (MID) has been a groundbreaking success in revolutionising motor insurance business in the country. The Marine and Aviation Insurance Database (MAID) is also nearing completion and is expected to be operational this year,” he said.
These databases, he said, were aimed at promoting fair market conduct, easing compliance with compulsory insurance requirements, and facilitating innovation
The NIC had issued its Regulatory Sandbox directive, which aligns with the provisions on innovative insurance licensing in the Insurance Act, 2021.
The insurance sector in Ghana comprises 26 non-life companies, 18 life companies, 3 reinsurance companies, and 113 insurance brokers.