Insurance Regulation in Aid of Development in the Third World: A Look at the Republic of Ghana

Abstract

The role of law as a tool in aid of development is extremely important to less developed economies. In the area of insurance where insurers act as mobilisers of vast amounts of capital, the importance of regulation as a tool facilitating development cannot be overemphasised.In recognition of the increasing importance of insurance activity to the economies of less developed countries, the United Nations Conference on Trade and Development has played a leading role in helping developing countries fashion regulatory systems that maximise the contribution of their insurance industries to the development of their local economies.This paper looks at the importance of insurance to the Ghanaian economy and discusses the use of insurance regulation to aid development. The paper first looks at insurance in relation to the national economy as a whole, examining how regulation is used to fulfil the various aspects of the industry's importance in aid of development. The paper then looks at the industry and the important sections of the economy, considering how regulation aids development in these areas by fulfilling the various objectives of the industry.