African market urges competition based on cost leadership
Tag: African market, African market competition
Summary: And it has therefore urged insurance regulators and supervisors to strengthen their human and ICT capacities so as to meet the challenges posed by unethical and unprofessional practices.
The stakeholders under the umbrella body of West African Insurance Companies Association (WAICA) subsequently have developed a code of ethics for members to subscribe and ensure that their individual staffers adhere to.
Concerned about the unethical behaviour and lack of professionalism among insurance industry players following increasing market competition, stakeholders in the African market want operators to embark on healthy competition, based on cost leadership or differentiation.
This implies that companies should be measured on their innovativeness, pricing of products (affordability) and value addition in their services, which of course, should be the attraction for consumers.
And it has therefore urged insurance regulators and supervisors to strengthen their human and ICT capacities so as to meet the challenges posed by unethical and unprofessional practices.
These were part of resolutions reached at the WAICA Annual General Meeting and Education Conference held recently in Banjul, The Gambia with the theme, “Professional and Ethical Behaviour in the Insurance Industry.”
According to the communiqué, member companies should invest in research and development in order to meet the latent expectations of customers.
It further noted that insurance being the bedrock of economic stability and wealth preservation should be guided by international best practices including the International Financial Reporting Standards and other good governance practices.
“Insurers should formulate strategic underwriting policies which will ensure that underwriting structures, processes and human resource capacity will add value to professional and ethical behaviour in the industry thereby maintaining the sustainability of insurers”, the communiqué observed.
According to the document, there is the need for reinsurers, as part of their technical support to insurers, to develop underwriting manuals for insurers.
“There is the need for data base development, which will encompass risk profile; risk sharing that will enhance the growth and development of the market,” the document further stated.