SIC Insurance Company Limited says it is considering reverting to its former structure based on product lines, in a campaign to push for profitability instead of market share in 2014.
The Managing Director, Mrs. Doris Awo Nkani, who announced this during the company’s 7th Annual General Meeting (AGM) on Thursday, explained that the company had encountered a lot of challenges implementing the current customer class-based structure it adopted three years ago as a one-stop shop for clients in accessing all their insurance needs from one department.
Subsequently, she said, the company had done a careful review of the structure and made recommendations to its Board to revert to the former structure based on product lines where “skills and expertise have been built over a long period of time, in order to save the company from possible loss of major businesses due to frustrations experienced by clients.”
On the agenda for this year’s AGM, held at the College of Physicians and Surgeons in Accra, were key issues such as the company’s account for 2013 ending, the authorisation of directors’ to fix the remuneration of auditors, the election of Directors and re-election of past directors, as well as the approval of their remunerations.
On the outlook for 2014, Mrs. Nkani reiterated that the focus of management was to continually build a strong, robust and profitable company whilst deepening gains by positioning the business in the minds of the insuring public.
She said strategic areas to be considered by the company were excellent customer service, prudent underwriting, expedited claims handling processes, innovation and human resource development.
Despite describing 2013 as a challenging year, Mrs. Nkani observed that 2014 has brighter prospects.
“The introduction of the ‘No Premium, No Cover Policy’ by the regulator National Insurance Commission (NLC) has the potential of boosting the cash and overall financial position of the insurance companies in the country,” she observed, adding that the policy would spur an “improvement in the structuring of our investment portfolio.
“Due to the scale of investment in our company’s balance sheet and the impact of investment results on its profitability, the management of these investments is a key function that can create significant value for the company’s policyholders in terms of prompt claims payment and shareholders in terms of dividends flowing from the profits of the company,” she said.
Mrs. Nkani disclosed that the company paid a total of GHc 20,787,537.00 to policyholders and claimants in 2013, indicating that through the payment of such claims, the company was contributing significantly to the continuation of business and economic activities in the country.
“We insure a greater part of national assets and those of major economic players in manufacturing, energy, construction and individuals,” she said, adding: “We are, therefore, not relenting on our efforts to stay ahead of the competition as far as claims payments is concerned.”
Chairperson of SIC Insurance, Mrs. Felicity Acquah, disclosed that in consultation with the NLC, the company has written off GHc 7,976,682 in debts, in accordance with their new credit guidelines that requires insurance companies to write off all outstanding premiums that has been in existence for more than a year.
“Although this amount has been written off, the Board has challenged the Executives of the company to ensure that at least 50% of the amount is collected by the end of 2014,” she said, indicating that with the introduction of the ‘No Premium, No Cover’ policy, debt write-offs would be a thing of the past.