UNDP engages insurance stakeholders on actuarial capacity building 

 

The United Nations Development Programme (UNDP) has hosted around 60 Chief Executive Officers and senior executives from insurance and reinsurance companies to discuss the importance of building actuarial capacity in the country.

The event, titled “CEO’s Luncheon,” emphasized the need to prioritise actuarial skills in developing innovative insurance solutions, calculating premiums, and designing effective payout mechanisms.

The initiative was part of the UNDP’s Insurance and Risk Finance Facility (IRFF) project, aimed at assessing needs in Ghana and supporting the creation of innovative insurance products and services for vulnerable individuals and communities.

Mr. Sukhrob Khoshmukhamedov, Deputy Resident Representative of UNDP Ghana, said that the Programme was dedicated to working with the actuarial community and other insurance stakeholders to promote inclusive insurance solutions, particularly for low-income households, micro businesses, and vulnerable groups.

He urged stakeholders to “push the boundaries” of innovation in insurance and risk finance to address the financial risks associated with climate change-induced disasters.

“Collective strength lies in partnership, innovation and shared commitment to reducing vulnerabilities and protecting the citizenry,” he said.

Mr. Michael Kofi Andoh, Acting Commissioner of Insurance at the National Insurance Commission (NIC) Ghana, noted in an interview that there was limited actuarial deployment in the insurance industry due to a lack of understanding of the value actuaries bring.

He mentioned that the commission was collaborating with partners to educate and raise awareness about the importance of actuaries in the insurance sector to tackle this issue.

“This will help us have better insurance products managed in a better way, and we could end up with an insurance industry that is better equipped to administer and pay claims with insurance products that meet the need of various people,” he said.

Mr. Andoh emphasized the need for industry players to innovatively target individuals in the informal sector, adapting insurance solutions to fit “our people, their occupations, and their livelihoods.”

Under the IRFF project, UNDP is partnering with Milliman, the largest provider of actuarial services to the global insurance industry.

Milliman, with its expertise in risk management analytics, has pledged to offer US$1 to 2 million per year in pro bono services until the end of 2025.

GNA

Nations Development