The Deputy Commissioner of the National Insurance Commission, Mr Kofi Andoh, has said the commission, in collaboration with its key partners, will increase insurance coverage in the country from about 30 per cent recorded in 2017 to 40 per cent by 2020.
He stated that insurance was very important for individuals and business and thus must be acquired by every Ghanaian.
He added that with the emergence of mobile-delivered insurance packages, insurance penetration could be extended.
“From 2008 to 2017, we have been able to increase the coverage of insurance. The percentage of the population who have access to insurance have increased from about eight per cent to 30 per cent. This has largely been helped by the mobile-delivered insurance.
In the NIC current strategic document, the target is to increase this percentage to 40 per cent by 2020,” he said.
Mr Andoh made this known at the official launch of the B-Life and B-Health insurance products by BIMA Ghana in Accra on April 24.
He also underscored roles played by the mobile delivered insurance firms such as BIMA in intensifying accessibility and efficiency in ensuring
maximum insurance coverage in the country.
“The emergence of the mobile-delivered insurance pioneered by BIMA way back in 2010 has made the purchase of insurance very easy for the average Ghanaian. It also made it possible to split premiums into bits so that it becomes affordable for everybody. This has transformed the uptake of insurance and enabled millions to access life and hospital insurance,” he said.
Inclusion of informal sector
Mr Andoh observed that the informal sector did not subscribe to insurance packages, owing to the fact that insurance had been targeted at personnel and businesses in the formal sector.
He, however, opined that since the informal sector formed a larger fraction, it was expedient to inject insurance packages into their operations to prevent any misfortunes.
He blamed the low insurance penetration in sub-Saharan Africa on the credence given to formal sector insurance over the informal sector.
“Historically, insurance penetration in sub Saharan-Africa has been very low. Traditionally, our insurance products and services have been targeted at the formal sector and this has sort of, excluded the informal sector.
“The informal sector is much bigger than the formal sector so by excluding them, we are running up against the big problem,” he said.
Mr Andoh mentioned that the commission had plans of including the informal sector, especially artisans, as well as micro and small businesses into the insurance net to help them manage their businesses properly and mitigate risks.
Mr Andoh noted that the NIC was charged with ensuring the effective administration and regulation of the insurance business in Ghana.
“We keep the gates; regulate who comes in, what they do and how they do it. We receive complaints from customers, we adjudicate them and ensure that products are well designed and viable to the company, and add value to the customers,” he said.
He also reiterated the NIC’s mandate of improving access to insurance for Ghanaians.