Financial technology firms (fintechs) have become key enablers and positive disruptors in the country’s quest to deepen insurance penetration.
Insurance and pensions sector experts at the B&FT’s 2023 Money Summit held last week noted that fintechs have become very critical and less of a disruption, as the platforms are helping in ensuring efficiency through onboarding, validation, making key investment decisions and reporting.
Group CEO-Glico Group, Edward Forkuo Kyei, said fintechs have become the bedrock from which penetration will increase. The insurance penetration rate in Ghana was below 1 percent in 2009, and is reckoned at still below 2 percent currently – a situation that has been a source of worry to players in the industry.
Given the ever-changing needs of customers, it has become imperative for insurance companies to leverage financial technology (fintech) to improve efficiency and increase penetration.
“Tech is something positive that has come, and we need to leverage on it to improve efficiency and also reach out to more clients.”
Head-Group Business Starlife Assurance, Dzifa Fiati, also tagged fintechs as enablers in the insurance business that can help the industry reach its vast untapped market in the country.
There is so much mileage to be done with insurance penetration in the country, because in other African markets insurance penetration gives about 17 percent to GDP. Mrs. Fiati therefore welcomed fintechs on board to help in reducing costs, and also meet the demands or needs of customers.
With regard to collaboration with fintechs, the Chief Investment Officer-Axis Pensions Trust, Nana Wiafe Boamah, suggested that insurers must consider providing finance for the growth and expansion of fintechs in the country.
“As long-term providers of finance, we can also collaborate by financing some of these fintechs to grow further within the constraints of our investment guidelines.”
Collaborating and growing together with fintech is not only key to ensuring sustainability, but also vital to achieving strategic business goals.