The Role Of Insurance Companies In The Economic Development

The Role Of Insurance Companies In The Economic Development

CHAPTER ONE

preface

The present biggest challenge is developing an frugality of a country†™ s sustainable growth and development to serve as a standard for husbandry the world over. In order to live up to this challenge, utmost governments†™ direct their sweats towards carrying and maintaining this sustainable growth and development to insure a better standard of living for their people.

Ghana, as well as any other, has always strived to ameliorate her status in the global frugality. This can be proved by the measures being put in place by once and present governments since independence. This has utmost of the time been in the form of policy documents containing the development points and bournes of the nation. The most recent policy document is the vision 2020 development programmed document which spells out the long term development ideal of Ghana over a period of 10 times( 2010 †“ 2020). It seeks to establish where she wants to be in the future and the way forward and where on the development graduation Ghana lies as a nation.

In this chapter, some of the motifs to be bandied are background of the study organizational profile, problem statement, objects of the study, exploration questions, compass of the study, and significance of the study and limitation of the study.

Organizational Profile

The insurance assiduity has surfaced prominently to serve as an institution meant to give services aimed at security diligence against the colorful threat essential in their operation

Prominent and premier in the assiduity in Ghana is the Metropolitan Insurance Company( MET). It was incorporated in February 1962 by Administrative Instrument( EI)No. 17 which was passed under the statutory Corporation Act, 1962( Act 232). still, on August 28, 1995 it was converted into a Public Limited Liability Company renamed Company Limited of Ghana as it’s now called.

Metropolitan Insurance Company has it as its charge to furnishing innovative, flexible and competitive fiscal products and services to its customer†™ s general public through quality services, expansive exploration and product operation coupled with commitment to icing fiscal liability. Despite the little attention given by the government, the insurance assiduity has been playing a veritably important part in icing some degree of security in assiduity and commerce. It’s therefore observed that insurance assiduity when given the necessary attention could play a foreigner reciprocal part in icing growth and hence public profitable and development.

still, the Koforidua branch of the Metropolitan Insurance Company was opened in 1976 with the Regional Office in the main request which is contrary the All Nations University. But on 15th May, 1987 the Metropolitan Insurance Company was moved from the old demesne to their new office complex located at the main marketable Centre of the city which is contrary the central synagogue .

Background of the Study

Several pointers have shown that, the insurance assiduity is at the primary stage in that there are a lot of competition and threat. According to Rayness,H.E( 1976), we can see that insurance started thousands of times agone but still it’s at the primary stage as compared to the banking assiduity. It appears that people aren’t patronizing insurance in Africa due to several reasons.

There isn’t enough education about insurance; people see it as a cheat on the society. utmost of the insurance conditioning are directed substantially to the yearly income earners and government workers leaving the petty dealers away.

Although it’s by law that every auto proprietor will have at least some kind of insurance cover for the auto that’s the third party insurance which seek to give insurance for the innocent rambler and other buses . Indeed this, people are running down from it but thank God the law will deal with people who don’t have insurance content for their buses .

A whole structure will be there without any insurance content. People feel reticent to go for insurance because when they see the kind of stress people go through before claiming their claims, it doesn’t encourage them to take insurance policy.

Insurance plays some vital places in profitable development. Due to the changing requirements of the frugality of Ghana, there’s the need to insure that proper education on insurance is taken into consideration; the Government must also broaden the laws on insurance by adding further to the motor insurance.

This study thus seeks to find answers to the questions and to assess the part played by the insurance in the profitable development.

Statement of the problem

In the 21st century, numerous Countries are moving from entrusting their security with the Banks to the Insurance companies because of the dynamic and significant part Insurance Companies play in icing security in the development of their frugality.

Although these insurance companies have contributed extensively in the aspect of security to the development of the Ghanaian frugality, and with all the sweats being made in creating mindfulness, utmost Ghanaians are still reticent to take insurance because they don’t see the need for it. The difficulty nature of the insurance assiduity towards the payment of claims makes it monstrous for third party insurers( marketable vehicles) to take over insurancepolicy. This has really affected their growth and the places they play in the development of the Ghanaian frugality, hence the need to carry out a study into the places insurance play in the contemporary Ghanaian frugality and assess the mindfulness of insurance among the public.

objects of the Study

The study into the assessment of the places being played by the insurance in the profitable development of Ghana seeks to achieve the following objective

To identify the part insurance play to the frugality of Ghana.

To assess the mindfulness among the general public about insurance in Ghana

To find out the problems facing the insurer and the ensured in Ghana

exploration Questions

The entourages were the exploration question

What part does insurance play in the Ghanaian frugality?

What’s the position of mindfulness among the general public about insurance in Ghana?

What are the problems facing e ensured in Ghana?

compass of the Study

The exploration covers only the Metropolitan Insurance Company( MET) of Ghana, Koforidua branch. The experimenter chose Metropolitan Insurance Company of Ghana Koforidua branch because it’s close to the academy and the experimenters could get easy access to information.

Significance of the Study

The findings of the study will give an input to the government in the expression of laws on the fiscal servicesindustry. The study will uncover and bring the important part being played by insurance profitable growth and development.

likewise, it’ll be of important use to scholars who are bearing exploration work on analogous issue. It may serve as a reference for them and also for scholars studying courses in finance and insurance.

Incipiently, recommended results will help operation in this sector to contain, problems defying the assiduity.

Limitation of the Study

The experimenter in an attempt to gather data for the exploration work faced the following difficulties. The experimenter faced a problem of time operation. This is because combining lectures and other academic commitments with this study which should be completed within three months will really be a veritably excited a task and can affect the findings of the work.

The experimenter also face fiscal problem. The experimenter has to use part of her fund plutocrat to collect and reuse the exploration data gathered from the insurance company and this can have effect on the findings of the work. Also some repliers were reticent to answer some questions because they were nonpublic.

Another excited problem is that, replier to questionnaires and interviews not willing or ready to give the experimenter all the necessary cooperation. This can affect the findings of the work. By ignoring the experimenter fully, others may also give misinterpret responses or do †œgo and come latterly stations. All these constraints may affect the result of the study in one way or the other.