Insurance providers pay out GH¢1.4bn in claims annually

Insurance providers pay out GH¢4 million every day as claims translating into about GH¢1.4 billion a year.

Former President of the Ghana Insurers Association (GIA), Ivan Abubakar Avereyireh, who announced this said barring only a few failures in claims due to disputes between providers and clients, insurance companies have fully and always paid claims.

He stated this when he addressed insurance brokers at the launch of the 2023 GIA Insurance Awareness Month in Accra.

Avereyireh, who was speaking on the theme, ‘Making insurance the Ghanaian way of life,’ however acknowledged that despite this impressive showing by insurance providers, public opinion regarding insurance is largely negative.

To change this negative public perception, he advised insurance companies to not only provide prompt payment of claims, but also improve the quality of the service they provide if they want to change the public’s perception of insurance.

He asserted that “clients can only believe us if we fulfil our end of the bargain. The belief out there is that we are quick to take the premiums, but when it comes to payment we are hostile, but that is not true.”

The former President said that ethical dealings with the public make insurance companies marketable.

As part of this marketability, he advised insurance companies to tailor their services to the needs of the society, and not focus on targeting the same groups of people they have traditionally focused on.

President of GIA, Michael Kobla Aklasi, urged insurance practitioners to educate people on why insurance should be part of their investment for future-proofing philosophy.

He therefore called on them to be more proactive and continue to engage the public.

“How can the insuring public believe in insurance, its numerous benefits and its risk mitigating effects if we do not tell them?” he quizzed.

Acting Commissioner of Insurance at the National Insurance Commission (NIC), Michael Kofi Andoh, commended   GIA for establishing the month-long celebration.

He noted that making insurance a way of life requires a high level of awareness.

And this awareness is one of the best ways to protect consumers, as awareness of their rights will protect them from being shortchanged.

He said, “It is important for consumers to know their rights to avoid being shortchanged. It is important for consumers to know that there is a regulator who is there to protect their interests, and how they can easily access this regulator. It is important for consumers to know what to expect when they launch a claim or complaint”

Andoh noted further that insurance awareness helps reduce disputes between clients and providers.

This awareness he said of the various insurance jargons has direct implication on they experience when they make claims, which are the subject matter of most complaints that are made at the NIC.

Also important to have is adequate knowledge of the various kinds of insurance products to enable the client tailor their needs to their payments and claims.