The Managing Partner at Envirosafe Ghana Limited, Yaw Banahene, has counselled Ghanaians and businesses to take advantage of insurance policies to navigate the difficult times exacerbated by the effects of global geopolitical tensions.
According to him, the simultaneous convergence of multiple economic stressors is testing the resiliency of every business especially at a time the country is facing inflation, exchange rate issues, pandemic and supply chain issues all at the same time.
He, therefore, suggested that tapping into risk advisory services can be especially beneficial to companies facing uncertain market conditions.
“Insurance can play a leading role in softening the blow as companies brace themselves for rising inflation, a weakened cedi, and the effects of global geopolitical tensions amid other
uncertainties. Whether that means using insurance to free up capital for other uses,
minimizing liabilities, or simply providing the essential support to ensure the stability companies need to operate amidst uncertainty”, he said in an article.
While explaining that insurance isn’t just about once-a-year engagement at renewal, paid premium, and collection of claims he charged insurers to form genuine partnerships with customers to improve the risk environment and deliver real value to the customer when they most need it.
Mr. Banahene further outlined four strategies as a game plan businesses can adopt to stay afloat and weather the tough economic system.
“Savvy managers will look to the power of their partnerships with Risk Management consultants, brokers, and insurers to help them adapt to adverse circumstances. As risk management teams collaborate with their partners toward crafting bespoke solutions that address fluctuations in the environment, four key priorities must remain at the forefront:
• 1. Given rapidly rising inflation, ensure coverages have been scaled and valuations remain current.
• 2. Consider general risk management tactics, including risk control, risk transfer, and engineering.
• 3. Use risk advisory and consultancy services to understand and implement best practices; this can help improve safety and lower costs.
• 4. Maintain close communication with brokers and insurers throughout the year to avoid surprises at renewal or when the risk crystallizes.
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