By Frederick ASIAMAH
The Ghana Insurers Association (GIA) is determined to improve insurance penetration in Ghana and has pencilled a number of interventions in this regard.
Speaking exclusively to Business Day recently, Kingsley Kwesi Kwabahson, Head of Technical – Life at the GIA Secretariat, revealed that the association is developing a code of conduct to check errant practitioners while companies are deepening their training and selection procedures.
“Individual companies have their own code of ethics but we are by and large trying to see how we can bring all of these things together and have a code that is generally setting the minimum standards that if you violate you will be sanctioned even to the extent that if you misbehave in one company, another company will not take you.”
The ultimate impact the Association seeks is to increase the number of insurance subscribers in Ghana.
Insurance penetration
Insurance penetration in Ghana is estimated at below 2% compared to the Africa average of 3.5%.
Experts have described the level as rather worrying for a country that aims at significantly improving financial inclusion.
Much of the low coverage is often attributed to misconception about insurance, helped by mistrust of insurance policy sellers.
According to Kwesi Kwabahson “…if it’s 1.17% to GDP, it gives you an idea that there are more prospects. It means that if we do our things right and we use the appropriate strategy, we are likely to cover.”
Code
Expatiating on the strategies, he said one example is that “we have to fight the issue of perception. People have the perception that insurers are quick to take premiums but slow when it comes to paying claims.”
Therefore, he identified that “we have to pay claims on time. And then we must tell exactly what our products can do… We should not lie about the products; we should tell them exactly what the products can do.”
In the light of this, the GIA has started a number of initiatives, he said, pointing to insurance awareness month, which is a period set aside for sensitising the public on insurance.
“We are also looking at setting up a complaints management system” which will allow people to walk in and discuss any issue they have.
Besides, “the insurance companies are now strengthening their training procedures and selection procedures so that before you become an agent you go through training and you are educated on features of the product.”
He added: “And then, we are also coming out with codes of ethics to sanction people who deceive others.”
According to him, these instruments are not being done only as a reactive measure but also as a proactive move.
“My position is that you have a number of them. You have a blend. Sometimes, you pass a law not because there’s an issue at hand but you project into the future…because once you are in a human environment there are definitely going to be different, different things and so you must pre-empt [them].”
He said the code of ethics being formulated partly because “we want to look into the future and prevent certain things from occurring. And then, there are certain situations where issues are happening and you must take pre-emptive measures to deal with the issues. So it’s a blend…”
