Risk Based Supervision Of Insurance In Ghana: Prospects And Challenges

ABSTRACT The purpose of the study is to investigate susceptible risk activities of insurers from the new risk-based supervision framework and determining whether a significant difference exists between the inherent risk exposures of insurers and their risk management control functions. The development of better and effective strategies for prioritizing resources as a way improving the financial health of insurance companies coupled with risk management controls to avoid insurers’ insolvency has been the main aim of the new risk-based supervisory framework. In order to identify threats and devise measures to tackle and avoid insolvency of insurance firms, it is critical to investigate the activities of insurance firms and determine the significant characteristics of those activities that contribute to financial unhealthiness. A survey study involving 200 respondents were randomly selected from insurers in the Ghanaian insurance industry for this study. Various descriptive statistics, test of mean difference and the probit regression model were used in this study to help achieve study results. The results of the study showed that significant factors of an insurer’s insolvency are contributed by both inherent risk activities and risk management control functions, albeit dominated by the inherent factors. The effect of significant inherent risk activities of insurer’s is twice as high as the risk management control activities of insurance companies. Insurers risk profile comprises the intrinsic business risk activities of insurers, their operational management and their risk control and supervision functions. The significant risk activities identified are toward insolvency of insurance companies, therefore the study recommends that insurers prioritize risk activities and provide risk mitigating tactics; regulatory authority must reorganize supervisory controls and provide technical assistance to help insurers keep abreast of their ever-changing risk profiles. 

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APA

TWUMBARIMA, S (2021). Risk Based Supervision Of Insurance In Ghana: Prospects And Challenges. Afribary. Retrieved from https://afribary.com/works/risk-based-supervision-of-insurance-in-ghana-prospects-and-challenges

MLA 8th

TWUMBARIMA, SOLOMON "Risk Based Supervision Of Insurance In Ghana: Prospects And Challenges" Afribary. Afribary, 16 Apr. 2021, https://afribary.com/works/risk-based-supervision-of-insurance-in-ghana-prospects-and-challenges. Accessed 25 Jun. 2024.

MLA7

TWUMBARIMA, SOLOMON . "Risk Based Supervision Of Insurance In Ghana: Prospects And Challenges". Afribary, Afribary, 16 Apr. 2021. Web. 25 Jun. 2024. < https://afribary.com/works/risk-based-supervision-of-insurance-in-ghana-prospects-and-challenges >.

Chicago

TWUMBARIMA, SOLOMON . "Risk Based Supervision Of Insurance In Ghana: Prospects And Challenges" Afribary (2021). Accessed June 25, 2024. https://afribary.com/works/risk-based-supervision-of-insurance-in-ghana-prospects-and-challenges