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The Impact of Emerging Regulatory Regime on the Private Health Insurance Industry in Ghana

Received: 31 August 2021     Accepted: 28 September 2021     Published: 15 October 2021
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Abstract

The study sought to examine how the current regulatory reforms in the insurance industry impact the services of insurance schemes in Ghana. The study used primary data comprising 60 employees in management positions in private health insurance companies in Ghana, and 5 personnel from the National Health Insurance Authority, the regulator. The employees were selected using purposive sampling technique, while the private health insurance companies that participated in the study were chosen using simple random sampling technique. Descriptive research, mean and standard deviation, as well as inferential statistics of ordinary simple linear regression analysis were used to analyze the data of the study. The results of the study revealed that the main reason for the current insurance regulatory framework in Ghana is to ensure safety and soundness of insurers; offer protection to consumers; bring sanity into insurance industry; promote best practices; mitigate industry associated risks, and to safeguard the interest of all stakeholders for socio-economic development. The findings of the study also revealed that the current insurance regulatory measures were established to manage systemic risks and market failures. The result of the study also revealed that the regulatory framework has both positive and negative impact on insurance companies’ activities in Ghana. Moreover, the findings of the study revealed that the regulatory challenges facing the insurers are logistical, education and training, human resource, legislative, and economic or financial ones. The results of the ordinary simple linear regression revealed that the regulatory challenges faced by insurers have a significant negative impact on the insurers’ overall satisfaction with the regulatory framework. Given these findings of the study, implication and recommendations are highlighted for policymakers, regulators and researchers.

Published in Journal of Finance and Accounting (Volume 9, Issue 5)
DOI 10.11648/j.jfa.20210905.13
Page(s) 200-206
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Regulatory Reforms, Regulator, Private Health Insurance, Regulatory Framework, Insurance

References
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[5] Kirkpatrick, J. (2018). Making the case for competition in policymaking–lessons from CMA advocacy 2014–2018. European Competition Journal, 14 (1), 152-173.
[6] National Insurance Commission Annual Report, 2009.
[7] Business and Financial Times (2010), July Edition of the Ghanaian Newspaper.
[8] Hutter, B. & Power, M. (2012). Private health insurance: implications for developing countries. Bull World Health Organ.; 83: 127–134.
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[10] OECD, O. (2004). The OECD principles of corporate governance. Contaduría y Administración, (216).
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[12] Kofman, E., & Raghuram, P. (2006). Gender and global labour migrations: Incorporating skilled workers. Antipode, 38 (2), 282-303.
[13] Sekhri, N., & Savedoff, W. (2005). Private health insurance: implications for developing countries. Bulletin of the World Health Organization, 83, 127-134.
[14] Spaan, E., Mathijssen, J., Tromp, N., McBain, F., Have, A. T., & Baltussen, R. (2012). The impact of health insurance in Africa and Asia: a systematic review. Bulletin of the World Health Organization, 90, 685-692.
[15] Nagar, (2005) Chartered Insurance Institute (CII) Coursebook, Insurance Law, CII learning solutions, pp 7/2-7/13, 11/1 – 11/6.
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[18] Stigler, G. (1971). The theory of economic regulation. Bell Journal of Economics and Management Science, 2 (1), 3–21.
[19] Posner, R. (1974). Theories of economic regulation. Bell Journal of Economics and Management Science, 5 (2), 335–358.
[20] Muller, C. (1990). Health care and gender. Russell Sage Foundation.
[21] Pfeffer, A. Z., Feldman, D. J., Feibel, C., Frank, J. A., Cohen, M., Berger, S.,... & Greenberg, S. S. (1956). A treatment program for the alcoholic in industry. Journal of the American Medical Association, 161 (9), 827-836.
[22] Creswell, J. W., Plano Clark, V. L., Gutmann, M., & Hanson, W. (2003). Advanced mixed methods research designs. In Tashakkori, A. & Teddlie, C. (Eds.), Handbook of mixed methods in social and behavioral research (pp. 209–240). Thousand Oaks, CA: Sage.
[23] Morse, J. M. (1991). Approaches to qualitative-quantitative methodological triangulation. Nursing Research, 40 (1): 120–123.
[24] Patton, M. Q. (1990). Qualitative Evaluation and Research Methods (2nd ed.). Newbury Park, CA: Sage Publications, Inc.
[25] Banerjee, A. & Chaudhury, S. (2010). Statistics without tears: Populations and samples. Ind Psychiatry J. 19 (1), 60–65.
[26] Nhis.gov (2020). Private health insurance scheme. Retrieved from http://www.nhis.gov.gh/phis.aspx
[27] Klein, R. W. (1995). Insurance Regulation in Transition. The Journal of Risk and Insurance, 62 (3), 363-404.
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Cite This Article
  • APA Style

    Richmond Bansah, Augustina Sidza, Victoria Akita. (2021). The Impact of Emerging Regulatory Regime on the Private Health Insurance Industry in Ghana. Journal of Finance and Accounting, 9(5), 200-206. https://doi.org/10.11648/j.jfa.20210905.13

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    ACS Style

    Richmond Bansah; Augustina Sidza; Victoria Akita. The Impact of Emerging Regulatory Regime on the Private Health Insurance Industry in Ghana. J. Finance Account. 2021, 9(5), 200-206. doi: 10.11648/j.jfa.20210905.13

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    AMA Style

    Richmond Bansah, Augustina Sidza, Victoria Akita. The Impact of Emerging Regulatory Regime on the Private Health Insurance Industry in Ghana. J Finance Account. 2021;9(5):200-206. doi: 10.11648/j.jfa.20210905.13

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  • @article{10.11648/j.jfa.20210905.13,
      author = {Richmond Bansah and Augustina Sidza and Victoria Akita},
      title = {The Impact of Emerging Regulatory Regime on the Private Health Insurance Industry in Ghana},
      journal = {Journal of Finance and Accounting},
      volume = {9},
      number = {5},
      pages = {200-206},
      doi = {10.11648/j.jfa.20210905.13},
      url = {https://doi.org/10.11648/j.jfa.20210905.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210905.13},
      abstract = {The study sought to examine how the current regulatory reforms in the insurance industry impact the services of insurance schemes in Ghana. The study used primary data comprising 60 employees in management positions in private health insurance companies in Ghana, and 5 personnel from the National Health Insurance Authority, the regulator. The employees were selected using purposive sampling technique, while the private health insurance companies that participated in the study were chosen using simple random sampling technique. Descriptive research, mean and standard deviation, as well as inferential statistics of ordinary simple linear regression analysis were used to analyze the data of the study. The results of the study revealed that the main reason for the current insurance regulatory framework in Ghana is to ensure safety and soundness of insurers; offer protection to consumers; bring sanity into insurance industry; promote best practices; mitigate industry associated risks, and to safeguard the interest of all stakeholders for socio-economic development. The findings of the study also revealed that the current insurance regulatory measures were established to manage systemic risks and market failures. The result of the study also revealed that the regulatory framework has both positive and negative impact on insurance companies’ activities in Ghana. Moreover, the findings of the study revealed that the regulatory challenges facing the insurers are logistical, education and training, human resource, legislative, and economic or financial ones. The results of the ordinary simple linear regression revealed that the regulatory challenges faced by insurers have a significant negative impact on the insurers’ overall satisfaction with the regulatory framework. Given these findings of the study, implication and recommendations are highlighted for policymakers, regulators and researchers.},
     year = {2021}
    }
    

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    AU  - Richmond Bansah
    AU  - Augustina Sidza
    AU  - Victoria Akita
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    JF  - Journal of Finance and Accounting
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    UR  - https://doi.org/10.11648/j.jfa.20210905.13
    AB  - The study sought to examine how the current regulatory reforms in the insurance industry impact the services of insurance schemes in Ghana. The study used primary data comprising 60 employees in management positions in private health insurance companies in Ghana, and 5 personnel from the National Health Insurance Authority, the regulator. The employees were selected using purposive sampling technique, while the private health insurance companies that participated in the study were chosen using simple random sampling technique. Descriptive research, mean and standard deviation, as well as inferential statistics of ordinary simple linear regression analysis were used to analyze the data of the study. The results of the study revealed that the main reason for the current insurance regulatory framework in Ghana is to ensure safety and soundness of insurers; offer protection to consumers; bring sanity into insurance industry; promote best practices; mitigate industry associated risks, and to safeguard the interest of all stakeholders for socio-economic development. The findings of the study also revealed that the current insurance regulatory measures were established to manage systemic risks and market failures. The result of the study also revealed that the regulatory framework has both positive and negative impact on insurance companies’ activities in Ghana. Moreover, the findings of the study revealed that the regulatory challenges facing the insurers are logistical, education and training, human resource, legislative, and economic or financial ones. The results of the ordinary simple linear regression revealed that the regulatory challenges faced by insurers have a significant negative impact on the insurers’ overall satisfaction with the regulatory framework. Given these findings of the study, implication and recommendations are highlighted for policymakers, regulators and researchers.
    VL  - 9
    IS  - 5
    ER  - 

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Author Information
  • Finance Directorate, Accra Technical University, Accra, Ghana

  • Finance Directorate, Accra Technical University, Accra, Ghana

  • Department of Accounting & Finance, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

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