GIA to increase insurance penetration to 6 per cent

The Ghana Insurers Association (GIA) has launched an insurance education programme to more than triple insurance penetration in the country by the end of year 2020.

Dubbed ‘DriveTime’ with Insurers, the programme is meant to increase insurance penetration from the current one per cent to six percent by the end of next year.

Under the 13 weeks programme, GIA and all stakeholders would embark on massive insurance education on radio and television across the country to sensitise the general public on the importance of insurance.

Speaking at the launch the Deputy Commissioner of Insurance, Kofi Ando expressed concern about the low insurance penetration in the country, and said the current one per cent insurance penetration was not the best.

He among other things attributed the low insurance penetration in the country to the misconception people have about insurance.

For instance, he said, people who bought insurance policies thought one needed to hire a lawyer before he or she could fight for an insurance claim, saying “About 90 per cent of the general public think without a lawyer, you cannot make an insurance claim.”

Mr Andoh therefore, commended the GIA and the stakeholders in the insurance industry for initiating the ‘Drivetime’ with insurers programme to educate the public about insurance.

The Deputy Insurance Commissioner disclosed that the NIC had developed an electronic database for motor insurance, saying the objective was to weed out fake motor insurance from the market and help the police easily detect fake motor insurance stickers.

He also said the NIC was working on a new insurance law that would make it mandatory for employers to provide group life insurance for their employees.

That, Mr Andoh said, was to provide financial relief to workers in times of calamity.

The President of GIA, Ms Aretha A.A Duku said insurance played important role in the development of any nation, saying Ghana’s economy would crumble if the insurance in the country industry collapse.

She said there was therefore, the need to increase insurance penetration in the country to provide comfort for business and individuals to go about their business.

Ms Duku said the ‘Drivetime’ with Insurers was not only to educate the public on the importance of insurance, but also showcase the good work players were doing   in relation to claim payment.

The President said the insurance companies paid huge claims and promptly to policy holders but it is only the non-payment of claims by some miscreants in the industry caught media attention, thereby creating bad image for the insurance industry.

 “The insurance companies in Ghana every month pays insurance claims to the tune of GHȻ1.6 million and GHȻ584 million every year, but nothing is done to publicise this,” she said, adding that  about GHȻ133 million had been paid  to victims and companies who were affected by the June 3rd 2015 disaster at Circle.

The Chairman of the ‘DriveTime’ Committee, Mawuli Zogbenu said about insurance education would be done about 36 local languages on radio and television across the country.

By Kingsley Asare

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