Activa International Insurance Company (ACII) in partnership with Coface has introduced a credit protection insurance product into the market to insure companies against the risk of financial default by their clients both on the domestic market and for export.
A partnership agreement between the two companies has consequently been signed to that effect and the product is expected to fuel economic activity by facilitating access to bank loans for businesses in Ghana and to the receivables purchase facilities offered by banks.
Activa is a member of the Pan-African insurance group, Group Activa Assurance while the Coface Group is a worldwide leader in credit insurance.
The Managing Director of ACII Ghana, Mr Steve Kyerematen at the signing ceremony in Accra said the partnership is in line with series of innovations Activa had brought to the insurance market in Ghana.
He said Activa had provided a wide range of general insurance products and some niche products including Assets Mark III policy (a policy that combines 20 optional covers both personal and commercial lines including property, business interruption, liability and transit covers). Products like medical malpractice, clinical trials, directors and officers’ liability are also available.
Mr Kyerematen noted Ghana has done a lot to achieve lower middle income status and the nature and character of the economy is also evolving, especially with credit control, therefore the introduction of credit insurance is a further step in this direction of an emerging economic activity.
Also, he said the partnership gives Ghana an opportunity to be placed on international financial market and that the partnership is an additional impetus for companies to look to Ghana looking at the insurance market.
“We at Activa are committed to providing credit insurance security, world-class services and solutions to clients in the insurance market. Quiet recently we were involved in sponsoring a road safety programme as an element of our corporate social responsibility. We as the insurance sub-sector will continue to contribute our quota in projecting the image of Ghana and improving the economy,” he added.
The Director General, Coface Services Maghreb, Mr Jean-Marc Pons said Coface choose to partner Activa because of its expert and world-class insurance services and coverage across 34 countries in Africa.
He said Coface helps companies evaluate and mitigate risks by proposing its assessments of country, sectoral and credit risk. The credit control insurance provides a solution to protect a company against customer default at any time and will be able to redeem in case of customer default.
The Regional Sales Manager, Maghreb, West and Central Africa of Coface, Mr Bagneki Hugues Olivier explained since trade receivables is an important asset of a company, the credit insurance provides a protection as companies can use it as a risk management tool to rectify bad debt collection.
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