Patronage of insurance services in Ghana low – NIC
Despite the steady growth of the insurance industry in Ghana, only five per cent of the country’s population hold any ‘insurance policy’, excluding public health insurance.
Mr Simon Nerro Davor, Acting Commissioner of Insurance, who made the observation, expressed regret that access to insurance services in Ghana was limited, especially among the low income -earning population.
He said the low patronage of insurance services in the country was due to lack of knowledge about insurance products and services.
Mr Davor also said lack of confidence and trust in the insurance companies due to negative publicity concerning payment of claims as well as benefits to individuals, and corporate entities also affected the industry.
Mr Davor made the remarks at the opening of the Takoradi office of the National Insurance Commission (NIC) on Thursday. This brings to three the offices of NLC in the country with the first two in Kumasi and Tamale.
He said the new office was opened in view of the strategic location of Takoradi as a cosmopolitan and oil city that has attracted many business entities.
Mr Davour noted that the insurance industry in Ghana continued to experience steady growth, and was becoming very competitive and in terms of premium income.
He said “it has in the past five years been growing at an annual average rate of about 32 per cent”.
Mr Davor said despite these developments, patronage was low and asked the NIC to address the challenges by coming out with policies to set standards for the transaction of insurance business.
He asked the NIC to secure the protection of consumers to enhance the integrity of the insurance market in the country.
Mr Davor appealed to insurance companies to correct the perception that they were interested in collecting premiums and not paying claims, to bring the industry in Africa to the internationally level.
Mr Kwadwo Appiah, Takoradi Area Manager of the NIC, said his outfit would step up its educational programmes to attract more customers, appealed for resource and logistics to enable the new office operate effectively.
Mrs Emma Ocran, a Senior Officer of the NIC, noted that the opening of the office would impact positively on economic activities in Takoradi and its environs.
Source: GNA