1.

EXECUTIVE SUMMARY
The insurance industry is one of the basic service industries in Indian economy, whose prospect is reflective of the economic resilience of the economy. With the globalisation of the economy, India has become the playground of major global insurance players.

2. INTRODUCTION SIC Insurance Company Limited is one of the oldest non-life (general business) insurance companies in Ghana. State Insurance Corporation was incorporated in February 1962 by Executive Instrument (E.I) No.17, which was passed under the Statutory Corporation Act, 1962 (Act 232). It was established as a corporate body by L.I. 424 of 1964 with an initial paid-up capital of GH¢1 million. On August 28, 1995, the Corporation was converted into a Public Limited Liability Company and renamed State Insurance Company of Ghana Limited as a preparation towards future divestiture. It was re-registered under the Companies Code, 1963 (Act 179) and currently has a paid up capital of GHc25 billion.

The company went public in 2007, when the Government of Ghana offered 60% of its shares, its IPO was oversubscribed by 97%.The government of Ghana retained a 40% equity after it listed on the Ghana Stock Exchange. As at September 2009, the company's assets totaled GH¢185.374 million with a gross premium of GH¢ 56.877 million. Recently, the company's management is on the project to expand its operations across the West African sub-region targeting Sierra Leone and Liberia as the most viable opportunities.

Products

Its business operations cover fire. Oil & Gas In the light of the Oil find along the western coast of Ghana. CORPORATE DIRECTION Corporate Vision . drilling through to production of oil and gas are placed in the consortium and a Manager is appointed. marine. general accident and policies for the hospitality Industry. GHANA INSURERS ASSOCIATION (GIA) as a way of building capacity and positioning itself to adequately handle all related insurances on Oil and Energy Risks. formed a consortium. Further to this. Track record among other things. Market Share SIC is a leading provider of general or non-life insurance products in Ghana with an estimated Market share of 26%. with the core responsibility of managing the entire portfolio. Al insurances relating to exploration. This responsibility involves dealing with all the local insurance companies participating in the consortium. motor. the clients and other stakeholders as well as the overseas re-insurers. based on our Capital Base. aviation.SIC Insurance Company was appointed as the Consortium Manager. Human Resource Capacity. the company has positioned itself to underwrite Oil and Gas and other ancillary business in the country.

This means that SIC has a very high claims paying ability. Insurance category two years running (2008&2009). the . Ghana) (2003 . The rating by GCR reflects an evaluation of an Insurer's current financial position as well as how its financial position may change in the future.2007). Internationally AA rated by Global Credit Rating. 2009 rated SIC Insurance Company Ltd in claims paying ability. The First Insurance Company in Ghana to be ushered into the CIMG Hall of Fame category. 3. we customize the insurance products for every client .We will maintain our dominance in the Insurance industry Corporate Mission “To provide innovative and competitive insurance and allied financial services to our clients through a highly skilled and motivated workforce with a commitment to deliver value to all stakeholders” CORPORATE VALUES (OUR PEOPLE PROMISE) At SIC. Four times Insurance Company for the year adjudged by the CIMG 2. 4. The Global Credit Rating Company (GCR) of South Africa in December. (Chartered Institute of Marketing.the right product for the right person at the right time! Achievements / Awards 1. South Africa.

Insurance for Public Property In Ghana. Political: Politicaly. Ltd has very reputable Reinsurers and Reinsurance Brokers.highest independently rated Insurance Company in Ghana. EXTERNAL ANALYSIS 3. its protection factors are strong and risk exposure is modest. This has resulted in influx of many insurance companies in Ghana. the law also requires all public buildings must also be insured against fire Minimum Capital Requirement Economic: The economic condition in Ghana . Minimum Motor Insurance for Road Users The law regulating the motor insurance in Ghana requires all road users to have the minimum insurance before applying the road. 3.1 General Environment The general environment is analysed using PEST. the government has liberalized the industry to enable all private insurance companies to come on board. SIC Insurance Co. Reinsurers In order to get maximum protection for the Insurances underwritten.

INTERNAL ANALYSIS 4. and at present has a monopoly in terms of electricity generation in the country. Most insurance companies in Ghana are now employing computer software and high technology to network their branches. which has provided greater autonomy to the divisions and has a sustainable customer base. It has significant capital investment in its infrastructure.2 Industry Analysis 3.1 Stregths and Weakness Strengths The major strength of EGC. Most Ghanaians have poor attitude towards insurance as most of them see insurance as taxation. Weaknesses Unsatisfactory culture and attitude Poor management control Weak management information systems Poor system of overhead charging Lack of employee responsibility Inefficiency of Northern Division’s power stations. EGC now operates through a divisional structure.2 Value Chain . Although EGC enjoys a monopoly position in respect of electricity generation at the moment.Socio-Cultural: Socio-Cultural behaviors of Ghanaians also has lots of influence on Insurance. that is electricity. with highest levels of unit cost Poor capacity utilisation in the Northern Division Power station N 4 damaged High level of harmful emissions from the Northern Division Net loss in 2008/9 overall impacting adversely on EGC as a whole High expenditure on renewals of plant and equipment No clear strategy for R&D Power cuts have been experienced previously Costs of EGC are rising faster than selling prices which were regulated by the Government 4. Technological: Mordern Insurance thrive well in technology and innovation.3 Opportunities and threats 4. 3. and consequently its divisions. is that it is Government funded and engaged in a business entity that provides an essential product. the Government could introduce competition into the industry in the future.

1 Strategic change 9.5 Core Competences and Strategic capabilities 4. STRATEGY AND ORGANISATION 7.3 Organizational Culture 8.3 Value System 4.4 Competitive Advantage 4.6 SWOT Analysis 5. CONCLUSIONS AND RECOMMENDATION .1 Selection of Strategy ( cost leadership/differentiation/diversification –to be deleted) 7.2 Recommended Strategic Choice 7. STAKEHOLDER EXPECTATIONS AND PURPOSE 6.2 Evaluation of Strategy 7. MANAGING STRATEGIC CHANGE 8.1 Possible Strategic Scenarios 6.4. STRATEGIC DEVELOPMENT 6.

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