About sixty per cent of the Ghanaian population do not have any form of insurance to protect them financially during emergencies.
The President of Insurance Brokers Association of Ghana (IBAG), Shaibu Ali, who disclosed this during the launch of the 2023 Insurance Brokers Awareness month in Accra, said the situation did not bode well for the country.
The month-long programme which will run until the end of November is being organised by IBAG.
Mr Ali said only 40 per cent of the country’s population was insured and said there was the need for stakeholders to work together to address the problem.
He said the low insurance coverage was due to the low level of knowledge of the public about insurance.
“It was for this reason the IBAG is organising the programme to create more awareness on insurance,” Mr Ali said.
He said the programme would help raise awareness about the immense benefits of insurance to help improve the penetration of insurance in Ghana.
The President of IBAG said the programme would help educate the public on the new Insurance Act 1061, and the new compulsory insurances introduced in the act.
“This year, we are placing special emphasis on educating the public about claims administration. We aim to enlighten insurance consumers on the process of making claims, the necessary documentation, procedures and the ‘dos’ and don’ts of claims procedure,” Mr Ali stated.
The Acting Commissioner of Insurance, Michael K. Andoh, advised insurance brokers to eschew the practice of undercutting premiums, to help sustain the insurance industry.
Premium undercutting is the practice where an insurance company secretly offers clients unrealistically low premiums in order to gain a competitive advantage.
To attract more clients, he said some insurance brokers reduced the premiums that clients should pay, saying the practice affected the financial foundation and viability of the insurance industry.
Mr Andoh urged insurance brokers to charge the right premiums to boost the financial capacity of insurance companies, and also position them to pay claims promptly.
The Acting Commissioner urged corporate bodies to use the services of insurance brokers to access insurance.
He said brokers could properly assess their insurance needs and shop for the best value in insurance coverage, and help them pursue their claims in the event of one.
“The good news about the services of a broker is that the client enjoys high level professional advice in insurance at no cost to them and are paid brokerage by the insurance companies. Due to their nature insurance brokers are licensed to work several insurance companies in the place of risk on behalf of their client,” he stated.
Mr Andoh commended the IBAG for introducing the Insurance Brokers Awareness month to educate the public on insurance and the processes they had to go through to access claims.
BY KINGSLEY ASARE
