Commissioner of the National Insurance Commission (NIC), Professor Justice Yaw Ofori has said the per centage of Ghanaians insured has risen from 29% to 44.6%.
The figure for Ghanaians insured refers to those who earn income.
He added that confidence in insurance has also grown from 60% to 78%, representing 18% increase due to public education and sensitization on insurance
He attributed the cumbersome insurance claim processes to high incidence of fraud in the industry.
He explained that all over the world, the stringent and cumbersome processes are to ensure that only genuine claims are paid.
The Chief Executive Officer (CEO) of the NIC reiterated that it is the responsibility of insurance companies to do due diligence before honouring any reported claim to ensure that they make only legitimate claims.
He stated that claims investigations are very important to actually weed out such fraudulent instances or at least minimise the canker.
Prof. Ofori gave the explanation at a workshop for selected senior media practitioners on insurance fraud.
Insurance fraud is a type of fraud perpetrated against or by an insurance company or agent for the purpose of financial gain
In Ghana, it is estimated that insurance fraud accounts for between 30 and 40% of all claims filed by insurers.
The figure is expected to be lower now following the introduction of the Motor Insurance Database in 2020.
Insurance fraud may fall into different categories, from individuals committing fraud against consumers to individuals committing fraud against insurance companies.
It can be inflating claims, staging accidents, and sometimes people staging their death to make a life insurance claim, among others.
Insurance is not only an important risk mitigation tool but can also play a critical role in the economic reconstruction and growth of a country.
Insurance fraud affects the financial sector through loss of funds and worsens the economic situation of individuals as well as the country.
Prof. Ofori pointed out that while the insurance industry continues to grow, it continues to be plagued by insurance frauds.
“That is one of the reasons why insurance claims need a lot of investigation.
“It also affects the premium people pay, because so far as there are leakages it results in a high premium for consumers,” he added
