Impact of diverse career pathways on addressing insurance industry challenges

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In the ever-evolving landscape of the insurance sector in Ghana, the presence of diverse career paths has emerged as a pivotal force for addressing the multifaceted challenges that this industry faces.

From risk assessment and underwriting to claims management and regulatory compliance, professionals on different career tracks play essential roles in navigating and mitigating the obstacles encountered in the Ghanaian insurance landscape. This examination delves into the significant contributions of these varied career pathways toward the resolution of challenges, shedding light on how their specialised expertise collectively shapes the insurance industry’s future in Ghana.

Overview of the Ghanaian insurance industry

The insurance sector in Ghana is regulated by The National Insurance Commission (NIC), which is responsible for effectively overseeing and managing the insurance business in the country. In recent years, there has been a noticeable surge in competition within the industry, marked by the entry of numerous new players into the market.

Presently, Ghana’s insurance landscape includes 29 non-Life companies, 21 Life companies, 3 Reinsurance companies, 114 Broking companies, 5 reinsurance broking companies and 3 loss adjusting companies. In this fiercely competitive environment, the Ghanaian insurance industry is dedicated to providing outstanding and top-tier services to cater for the needs of its policyholders.

Similar to other service-oriented organisations, the insurance sector in Ghana is focused on delivering exceptional service to ensure customer satisfaction. This commitment to excellence is maintained despite the challenging competition posed by both local and international rivals all vying for a greater share of the market.

The governing legislation for insurance operations in Ghana is the Insurance Act of 2021 (Act 1061). This Act was put in place to supersede the prior Insurance Act of 2006 (Act 724) with the primary goal of aligning regulation of the insurance sector with international frameworks and supervisory standards. This move aims to enhance the industry’s competitiveness on the global stage.

The new Act introduced three mandatory insurance products: public liability, professional indemnity and marine cargo insurance. Before this new Act, only motor and fire insurance for commercial buildings were compulsory. Additionally, the new Act also established the Insurance Education Fund to offer resources for training professionals in the insurance sector, and the Agriculture Insurance Fund to foster growth of this specific market segment.

This was in addition to the already existing three funds (Motor Compensation Fund, Client Rescue Fund and Fire Service Maintenance Fund) under the old Act. Furthermore, as part of its efforts to advance modernisation, the NIC has increased  the minimum capital requirement for insurance companies, reinsurance companies, insurance brokers, loss adjusters and reinsurance broking companies to enhance financial stability. The following table outlines the previous and updated minimum capital requirements for these entities.

Entity Previous MCR (GH¢) Current MCR (GH¢)
Insurance companies (Life and non-Life) 15,000,000 50,000,000
Reinsurance companies 40,000,000 125,000,000
Insurance broking and loss adjusters 300,000 500,000
Reinsurance broking companies 1,000,000 1,000,000

Challenges of the Ghanaian insurance industry

  1. Low insurance penetration

A significant challenge faced by the insurance industry in Ghana is its low insurance penetration rate, which quantifies the contribution of insurance premiums to the Gross Domestic Product (GDP). As per the 2021 NIC annual report, Ghana’s current insurance penetration stands at a mere 1 percent – a notably low figure considering the number of insurance companies operating in the country. Several factors contribute to this low rate:

  1. Public Distrust: There is a prevailing lack of trust among the public when it comes to the insurance industry. This mistrust has been exacerbated by recent banking crises experienced in Ghana.
  2. Negative Claims Experience: Many policyholders have had negative experiences with insurance claims, which has further eroded confidence in the industry.
  3. Complex Policy Documents: The lack of clarity and understanding of insurance policy documents has led to negative perceptions among consumers.
  4. Limited Awareness: A significant portion of the Ghanaian population has limited knowledge and awareness of insurance products and their significance. This lack of awareness acts as a deterrent for potential customers.

Despite the challenges in insurance penetration, Ghana has made commendable progress in insurance coverage. This is measured by the percentage of population covered by insurance relative to the country’s total population. Currently, insurance coverage in Ghana stands at 44 percent, making it the second-highest in Africa after South Africa.

  1. Regulation and Compliance Challenges

Regulation and compliance are central to the operation of every financial institution – of which the insurance industry is not left out. The National Insurance Commission (NIC) has played a crucial role in ensuring the stability and integrity of the insurance market by enforcing industry standards and promoting fair practices. While regulation is crucial for maintaining the industry’s integrity, the regulatory environment can be complex and challenging for insurers to navigate. Striking the right balance between compliance and operational efficiency has been a significant challenge for insurance companies and other stakeholders operating in the Ghanaian insurance industry.

A key compliance issue has to do with premium undercutting.  Insurance companies may offer clients unrealistically low premiums in order to gain a competitive advantage. This denies well-meaning companies of quality premium charges. Premium undercutting results in the inability of insurance companies to pay claims promptly, and an increase in clients’ dissatisfaction and a loss of confidence in the industry. This translates into slow growth for the industry. Premium undercutting has also significantly affected underwriting profit for a majority of insurance companies in the country.

Another compliance issue has to do with Insurance companies failing to adhere to the regulatory directive of ‘No Premium No Cover’. Since its implementation in April 2014, insurance companies have yet to fully adhere to the directive. This directive was implemented to curb the practice of insurance companies offering coverage without receiving upfront premiums. The rationale behind this directive is to ensure that insurance companies maintain a healthy cash flow, thereby enhancing their ability to meet claim obligations and remain financially stable.

However, in the face of intense competition within the insurance industry, many companies are still providing policies on credit terms. This practice is having a detrimental impact on their underwriting profit and their ability to pay claims.

  1. Challenges with distribution channels

Insurance distribution in Ghana is still largely dominated by traditional channels. Expanding and diversifying distribution channels to reach a wider customer base can be a complex and resource-intensive endeavour. The insurance industry’s growth has been slow because it hasn’t adapted quickly enough to new ways of selling insurance.

Many people still buy insurance through traditional methods, like meeting with an agent in person – and haven’t fully taken advantage of the convenience of technology and the Internet. This old-fashioned way of doing things is holding back the industry’s potential for growth. People nowadays want easier and more efficient ways to get insurance, like using the Internet, but the industry hasn’t caught up with these changes. So, to grow more, the insurance industry needs to change and use technology better to meet customers’ needs.

  1. High number of customer complaints

The Ghanaian insurance industry also faces challenges related to customer complaints. Efficient claims processing and settlement are vital for customer satisfaction. Delays in claims processing, disputes and inadequate claims management can erode trust and confidence in the industry. Effective resolution of these issues is essential to building trust among policyholders and maintaining the industry’s reputation. The following table shows the total number for complaints against the various division of insurance in Ghana according to the 2021 NIC annual report.

Sector Complaints received in 2021
Non-Life 284
Life 837
Micro 7
Total 1,128

The total number of complaints made against all insurance companies was 1,128 according to the 2021 NIC annual report.

  1. Overreliance on foreign reinsurers in the Ghanaian insurance industry

Many insurance companies in Ghana are relatively small in comparison to international standards. These firms often lack the financial capacity to handle large and significant risks, which is a common practice in the global insurance industry. Consequently, when it comes to insuring substantial risks, these Ghanaian insurance companies frequently rely on reinsurers located abroad – despite the presence of three reinsurance companies in the country.

This trend of transferring a substantial portion of insurance risks to overseas reinsurers has seen a significant increase, with the amount of reinsurance premiums sent abroad growing by almost 400 percent between 2016 and 2019. This upsurge in the transfer of reinsurance premiums to foreign reinsurers indicates that a substantial share of the insurance business conducted in Ghana is essentially being underwritten and managed by companies located outside the country.

This overreliance on foreign reinsurers not only reflects the limited financial capacity of Ghanaian insurance companies but also points to a lack of confidence in the local market’s ability to handle large and complex risks. While reinsuring with foreign companies may provide a level of security and expertise, it also results in a significant outflow of financial resources from the Ghanaian insurance sector.

As a consequence, the combination of weak financial capacity within local insurance companies and the flight of reinsurance premiums to foreign reinsurers has a detrimental effect on growth and development of the insurance industry in Ghana. This phenomenon not only limits the sector’s ability to retain and handle major risks within the country, but also contributes to a loss of potential revenue that could otherwise be reinvested to stimulate the industry’s expansion and enhance its capabilities.

  1. Insurance Fraud

 Insurance fraud is a pressing challenge in the Ghanaian insurance industry, encompassing both policyholder and provider fraud. Policyholder fraud involves deliberate submission of false information to obtain undeserved payouts, such as inflating loss values or staging incidents. Provider fraud, on the other hand, includes misrepresenting policy terms or denying valid claims without justification.

The financial impact of insurance fraud is substantial. Fraudulent claims deplete insurance companies’ financial resources – leading to increased operational costs and potentially higher premiums for honest policyholders. This undermines the industry’s financial stability and its ability to cover legitimate claims or invest in innovation. Fraud also erodes trust and credibility within the industry, making policyholders sceptical of insurance companies. This lack of trust can discourage individuals and businesses from purchasing coverage; leaving them vulnerable to financial risks.

Detecting and preventing fraud requires significant resources including technology, skilled investigators and compliance with strict regulations imposed by regulatory bodies like the National Insurance Commission (NIC).

Collaboration and data-sharing among industry stakeholders are essential, along with the adoption of advanced technology for real-time fraud detection. Consumer education about the consequences of insurance fraud and the importance of honesty in claims submission can play a role in reducing fraudulent activities. Overall, addressing insurance fraud is crucial for the industry’s financial health, credibility and long-term growth.

  1. Product Innovation challenge:

Developing innovative insurance products to meet the evolving needs of consumers and businesses in Ghana presents a significant challenge in the industry. Many insurance firms in Ghana predominantly offer coverage for conventional, well-established risks – and have been slow to introduce innovative solutions that extend coverage to address emerging risks. The creation of insurance offerings tailored to effectively tackle these evolving risks and dynamic market demands requires a substantial investment in research and development – an aspect where the Ghanaian insurance sector faces significant obstacles.

The insurance sector in Ghana faces a range of challenges which impede its ability to innovate and adapt effectively. These challenges encompass limitations in: research capabilities, capacity to address emerging risks, comprehensive understanding of the insurance market, utilisation of technological advancements and provision of sophisticated risk assessment tools.

Career pathways in the insurance industry

  1. Insurance agent

Insurance agents are integral to insurance companies, as they educate potential policyholders about suitable coverage options aligned with their needs. Agents working for insurance companies act as representatives to promote and advocate for their products. This creates a principal-agent relationship between agents and insurers. Opting for an insurance agent career offers a blend of financial and non-financial rewards.

Financially, agents earn commissions for new and renewed policies – including renewal commissions over time. Additional financial incentives like annual bonuses may also apply. Non-financial rewards include opportunities for travel, scholarships to study professional insurance programmes, healthcare benefits for agent and family etc. State licencure is mandatory for agents, varying by jurisdiction. Enrollment involves meeting requirements such as submitting application forms, identification and photographs, often with a guarantor.

To enrol as an agent, you must fulfil the fundamental prerequisites – which include submitting a completed agency application form, along with the potential agent’s identification card and a passport photograph. Depending on the jurisdiction and insurance company’s operational policies, the application process may necessitate at least one guarantor.

  1. Insurance broker

An insurance broker operates on behalf of clients, aiding them in finding appropriate coverage options by offering policies from multiple insurance providers with compensation through commissions. Differing from agents who represent specific insurance companies, brokers focus on serving the client’s best interests. They draw on their expertise to help clients pinpoint ideal coverage solutions, ensuring they obtain the right protection at competitive costs. This professional path provides avenues for progression: including managerial roles, shifts to diverse sectors like underwriting or compliance, and exploration of positions in account management, claims brokerage or business expansion.

The process of establishing a brokerage firm seems to be more intricate compared to setting up an agency. Requirements vary across jurisdictions. Operating a brokerage firm mandates a minimum capital threshold and a specified number of professionals.

For instance, in Ghana, the minimum capital requirement for establishing a brokerage firm is GH¢500,000. According to Section 111 of the Insurance Act, 2021, every insurance intermediary is obligated to submit a licencing application to the National Insurance Commission (NIC) alongside the requisite documentation.

Essential prerequisites for a brokerage firm include company registration certificates, shareholder particulars, a detailed five-year business plan, proof of meeting the minimum capital requirement, and an audited financial statement depicting assets and liabilities. Similar to agents, brokers also enjoy both financial and non-financial benefits as outlined earlier.

  1. Underwriter

The insurance industry commonly refers to the role of an underwriter as one of its most prevalent and prominent career paths. The entire process of establishing an insurance contract originates from the practice of underwriting. In essence, underwriting involves the assessment, evaluation and ultimate decision-making regarding whether to accept or decline a specific risk. This task is undertaken by professionals known as underwriters, who possess the expertise to make informed judgments pertaining to risk assessment, rating and the decision to either accept or reject risk.

Underwriters serve as the lynchpin in not only the approval of policies, but also in shaping the array of policy-types an insurance company should provide to potential clients. Their role extends further to the intricate task of calculating insurance premiums, and they are responsible for the meticulous crafting of policy details. This endeavour necessitates thorough analysis of data sourced from prospective policyholders. Underwriting goes beyond technical facets, demanding qualities such as critical-thinking, effective problem-solving and an aptitude to navigate intricate relationships between data, probabilities and financial considerations.

In order to start a career as an underwriter, it’s crucial to have the necessary education and training. Individuals interested in this role can acquire these qualifications by enrolling in respected insurance programmes designed for their particular geographic areas. Moreover, joining a well-known international institution, such as CII-UK, offers a route to acquiring the essential expertise and understanding needed for a prosperous underwriting career.

  1. Risk surveyor

Risk surveyors conduct comprehensive assessments of items that require insurance coverage to gauge potential risks. They collaborate with internal risk managers to actively participate in the identification, evaluation and communication of risks to various stakeholders including loss-adjusters, underwriters and business proprietors.

This ensures that all relevant parties are well-informed about pertinent risks. Initiating a career as a risk surveyor often involves commencing as an administrator within a risk team. Subsequently, certain employers offer the opportunity to pursue industry-specific qualifications enabling individuals to transition into roles as risk surveyors or even risk managers, contingent upon their level of experience.

  1. Loss adjuster

Loss adjusters are entrusted with the responsibility of scrutinising insurance claims to ascertain their coverage scope. Their core duty revolves around evaluating the magnitude of damage or loss that aligns with the parameters outlined in the insurance policy. A primary objective they hold is minimising losses and swiftly restoring operational continuity, aiming to achieve this with minimal disruption.

While a specific degree is not a requisite to become a loss adjuster, degrees in fields such as surveying, engineering, risk management or finance can be advantageous. Progressing within this career is facilitated by embarking on a structured, professional journey – typically guided by institutions like the Chartered Insurance Institute and Chartered Institute of Loss Adjusters.

These institutes offer a range of qualifications spanning the Certificate level to Advanced Diplomaa. Attaining the designation of a chartered loss adjuster brings along the autonomy to establish and oversee one’s own practice – marking a significant milestone in the trajectory of one’s career journey. As experience is accumulated, professionals are afforded the option to specialise within a particular category of claims. This specialisation not only fosters further growth, but also opens avenues to managerial roles

  1. Risk manager

A risk manager plays a vital role in assessing potential risks and providing guidance on strategies to mitigate or minimise those risks. Their responsibilities encompass identifying, evaluating and communicating risks to diverse parties, which can include underwriters, loss adjusters and senior executives. In corporate settings, the position of a risk manager is progressively evolving into that of Chief Risk Officer (CRO).

Chief Risk Officers wield significant influence in shaping risk measurement and control by selecting suitable personnel, processes and systems. They also serve as advocates for compliance, ensuring adherence to stakeholder requirements and staying abreast of evolving regulations and standards which impact the structure and functions of risk management.

Degrees in disciplines like economics, finance or management can enhance prospects of entering the field of risk management. Embarking on a career as a risk manager offers a captivating and fulfilling journey. It provides a chance to work in industries that align with personal interests and contribute to meaningful change within a company.

Aspiring professionals can also consider enrolling in recognised risk management programmes from esteemed institutions such as the CII-UK or American Insurance Institute. Notable programmes include Associate in Risk Management (ARM) and Chartered Property and Casualty Underwriting (CPCU), which equip individuals with the knowledge and skills needed to excel in risk management roles.

  1. Actuaries

Choosing a career as an actuary holds significant importance and influence. Actuaries utilise statistical methods to build complex models crucial for analysing extensive data sets. This analysis helps them understand risks and ensure insurance payments cover potential claims.

Actuaries also play a vital role in setting insurance premiums, a pivotal aspect for insurers. Beyond intellectual stimulation, the allure of this career lies in promising financial prospects. Actuaries are in high demand by insurance firms, consulting companies and financial institutions presenting a wide range of career possibilities. Within an evolving insurance landscape driven by technology and regulations, actuaries remain essential in upholding the financial stability of insurance companies.

Becoming an actuary involves rigorous education and professional qualifications. Aspiring actuaries often undertake a series of industry-recognised exams covering mathematics, statistics and finance. Top actuary societies include the Society of Actuaries, American Society of Pension Professionals and Actuaries, Casualty Actuarial Society and American Academy of Actuaries.

  1. Information Technology specialist

A career as an Information Technology (IT) specialist in the insurance industry is an increasingly vital and rewarding path. It encompasses a diverse range of responsibilities that involve the intersection of technology and insurance practices. IT specialists in this field play a critical role in driving innovation, efficiency and security within insurance companies. IT specialists in insurance can follow various career paths, including software development, data analysis, cybersecurity, project management, AI and automation specialisation, and blockchain development. As they gain experience, they can progress to leadership roles such as Chief Information Officer (CIO) or Chief Technology Officer (CTO) within insurance companies.

In conclusion, a career as an IT specialist in the insurance industry offers a dynamic blend of technology, finance and problem-solving. The industry’s increasing reliance on technology ensures that IT professionals will continue to be in high demand, making it an exciting and lucrative choice for those interested in both fields.

  1. Legal professionals

Legal professionals, commonly known as lawyers, hold an indispensable position in the insurance sector – where their primary responsibility is to ensure that the industry conducts its affairs in strict accordance with legal frameworks. They provide essential guidance to both insurance companies and policyholders in navigating intricate legal issues which may arise. Lawyers in Ghana’s insurance industry fulfil a spectrum of vital functions, including but not limited to policy creation and evaluation, regulatory adherence, claims administration, litigation assistance – and even specialisation in claims-related matters.

Top of Form

How various professions contribute to resolving issues in Ghana’s insurance industry

The insurance industry in Ghana, akin to its global counterparts, encounters specific challenges as previously outlined. Over time, collaborative efforts among diverse career pathways have played a pivotal role in mitigating some of these challenges. Each of these career pathways has made its unique contributions to tackling industry issues and fostering the insurance sector’s advancement in Ghana. In this discourse, we delve into the individual roles of these career pathways and examine how their cooperation has resulted in delivering substantial solutions for the Ghanaian insurance industry.

  1. Introduction of innovative distribution channels

Insurtech is gradually gaining ground as insurers are digitizing processes and looking to automate core operational areas. Insurers are exploring partnerships to deploy mobile insurance products to deepen mass market penetration. Digitization is top of mind for insurers with mobile solutions offering viable channels.

Professionals in the various career pathways have contributed positively in developing innovative distribution channels for the Ghanaian insurance industry. These innovations has helped reduce the over reliance on the traditional methods of distributing insurance products. The introduction of the various distribution channels has contributed in addressing issues related to data management, speed of service, fraud detection and operational efficiency. Technology and data professionals drive innovation in the insurance sector, developing solutions to meet the changing customer preferences.

IT specialists have been instrumental in creating the digital infrastructure required for new distribution channels. They design and develop online platforms, mobile apps, and digital tools that enable customers to access insurance products conveniently. They ensure efficient data collection, storage and analysis, which is crucial for tailoring insurance offerings to customer needs and preferences.

They also play a vital role in safeguarding customer data and transactions, building trust in digital channels. Underwriters play a role by evaluating the risks associated with new distribution channels. They assess the impact of online sales, direct-to-consumer models, and other channels on risk exposure and pricing. Marketers conduct research to identify market segments that are best suited for new distribution channels.

They analyze consumer behavior and preferences to tailor marketing strategies. Marketers create awareness about the new channels through advertising, social media, and other promotional activities. They highlight the convenience and benefits of using these channels. In all this, the compliance officers ensure that new distribution channels ahere to all regulatory requirement to prevent any sanction.

Star Assurance Limited introduced the Pokuaa Chat Box in 2022, which stands asa significant and innovative distribution channel within the general insurance space.

Star Assurance Company Limited, one of Ghana’s leading insurance brands, launched its innovative and best-in-class Whatsapp-enabled insurance distribution channel named POKUAA to create a smooth and seamless customer experience, for both existing and new customers. ‘Pokuaa,’ which is also SMS – enabled, responds quickly and effectively to each user’s specific needs – from requests for quotes, payments, delivery of policy documents and claims filing, all in real-time.

Pokuaa remains active 24 hours a day, seven days a week, ensuring that both customers and intermediaries can transact around the clock and in the comfort of their homes, offices and even cars. To initiate a transaction with Pokuaa, a client must send a WhatsApp message to 0242426160 or SMS to the short code *713*222# and they would immediately be able to get whatever insurance product or service they seek.

  1. Product innovation

he diverse career pathways have played a role in addressing the issue of product innovation within the insurance sector in Ghana. The Commission approved Thirty-four (34) new products and product enhancements in 2021 compared to thirty-three (33) in 2020. Out of the thirty-four (34) new or enhanced products, twenty- nine (29) were Life insurance products, whiles the remaining five (5) were Non-Life insurance products (NIC report for 2021).

Various career pathways contribute to achieving this result. Here’s how each pathway plays a role in driving product innovation. Marketers conduct market research to understand customer needs and preferences. They use this information to create marketing strategies that resonate with target audiences for new products Marketers develop promotional campaigns to introduce and highlight the features and benefits of new insurance products.

IT specialists develop digital platforms and tools that enhance the accessibility and user experience of insurance products. They enable the use of mobile apps, online portals, and other digital channels for policy management and claims processing. Underwriters also work with product development teams to create insurance products suitable for various distribution channels. They ensure that coverage aligns with the channel’s target audience and distribution methods. Actuaries ensure that new insurance products are priced competitively and sustainably. They use data analysis to set appropriate premium rates while maintaining profitability.

In 2021, Vanguard Assurance introduced the “Homeprehensive Policy,” a groundbreaking insurance offering that combined home and vehicle insurance coverage into a single policy. It offers comprehensive protection, flexibility and the convenience of managing your insurance needs in one place, giving you confidence in the face of unexpected events. Vanguard received the esteemed “Product Innovation of the Year” award at the 6th edition of the Ghana Insurers Awards, which took place in July 2023, in recognition of this groundbreaking product.

Innovation in claims payment process

A variety of career paths within the Ghanaian insurance industry play vital roles in ensuring effective claims management, a critical aspect of upholding insurer obligations and maintaining a positive reputation. Professionals including claims adjusters, IT specialists, underwriters, legal experts, customer service professionals, account officers and more all contribute to bringing innovation to the claims handling process. Many companies have implemented measures to expedite claim payments, bringing relief to claimants.

As an example, Enterprise Insurance has implemented a ‘same-day claim payment’ system, enabling individuals to receive motor insurance claims of up to GH¢5,000.00 on the very day they submit their claim. To facilitate this process, they have established a specialized Same Day Claims Unit at their Airport Branch, specifically designed to manage motor insurance claims that meet the specified criteria.

In a similar vein, Star Assurance has significantly improved its claims management procedures by implementing a ’24-hour claims payment’ system. This advancement ensures that individuals filing motor insurance claims valued at or below GH¢5,000.00, can expect to receive their claim settlements within 24 hours of reporting. This convenient service is available at all Star Assurance branches including their head office.

Their commitment to pioneering innovations in the insurance industry was acknowledged when they received the prestigious ‘Claims Initiative Award 2023’ at the 2023 Ghana Insurers Awards, which took place in July 2023. This recognition is likely to motivate them to expand the 24-hour claim limit and extend this expedited service to other insurance product lines, providing even greater benefits to claimants. These accomplishments are the result of collaborative efforts across various professional roles within the company.

  1. Awareness creation and Expansion of the insurance market:

Sales and marketing professionals including agents and brokers in the insurance sector play a pivotal role in expanding the market by reaching out to new customers and diverse demographic groups. They focus on issues related to increasing market penetration and improving accessibility to insurance products. These professionals also have a vital role in educating customers about various insurance offerings, enabling them to make well-informed decisions and reducing the likelihood of misunderstandings or misrepresentations.

To enhance insurance awareness and education in Ghana, the new Insurance Act of 2021 (Act 1061) introduced the Insurance Education Fund. This fund is dedicated to advancing education and fostering professional development within the Ghanaian insurance industry. Part of the fund’s resources may be directed toward research projects and initiatives aimed at promoting best practices in insurance, enhancing risk management, and driving innovation within the context of the Ghanaian insurance landscape. The training provided to these professionals will ultimately contribute to increased awareness and penetration of insurance in the region.

  1. Strict adherence to regulation and compliance:

To adhere to the extensive array of both internal and external regulations mandated by regulatory authorities, a growing number of insurance companies have appointed Chief Compliance Officers (CCOs). These CCOs play a pivotal role in ensuring that the company conducts its daily operations in strict accordance with all relevant regulations, thereby mitigating the risk of fraud and sanctions that could tarnish the company’s reputation.

The responsibilities of these CCOs encompass a broad spectrum with a primary focus on compliance and ethical practices. They serve as guardians of the company’s commitment to ethical conduct and adherence to the established regulatory framework. Regulatory authorities frequently place a strong emphasis on consumer protection, and CCOs are instrumental in addressing issues related to fair treatment, transparency, and the prevention of unfair practices that could negatively impact policyholders.

However, the effectiveness of CCOs in their roles rely on other professionals within the industry. Collaboration with other professionals such as Chief Risk Officers (CRO), underwriters, loss adjusters, IT specialist and many more is key to their success.

Introduction of Motor Insurance Database by National Insurance Commission (NIC)

A Motor Insurance Database (MID) is a centralized electronic system that stores essential information about motor vehicles and their insurance coverage. This database is managed by NIC. The MID system enables the various stakeholders within the industry to have easy access to information about all vehicles insured in the country.

The Motor Insurance Database (MID), implemented at the beginning of 2020 has enabled the Commission to achieve one of its key objectives of minimizing the incidences of premium rate undercutting.

The results at the end of the year lends credence to this fact with motor insurance class of business experiencing a significant increase in premium from GH¢677million in 2019 to GH¢925million in 2020, contributing 42percent to the total premium and representing year-on-year growth of 37percent. There are more gains to be made in the coming years if the collaboration between the Commission and the Industry manages to completely eliminate premium rate undercutting as well as fake motor Insurance.

The creation of this database became a reality due to a collaborative effort that united professionals from the regulatory body and different sectors within the insurance industry. This collaborative endeavor nurtured a shared dedication to not only successfully introduce the database but also to ensure its sustained functionality. Key contributors to the success of this initiative included IT experts, regulatory officials, legal practitioners, underwriters, agents, brokers, and government representatives

Conclusion

In conclusion, the diverse career pathways within the Ghana insurance sector play instrumental roles in addressing the challenges facing the industry. Through their unique expertise and collaborative efforts, professionals ranging from claims adjusters to IT specialists, underwriters, marketers (brokers and agent), compliance officers, risk managers, loss survey / adjusters and legal experts contribute to innovation, efficiency, and ethical practices.

Together, they form a cohesive network that ensures regulatory compliance, enhances customer experiences, and promotes the industry’s growth and sustainability. The collective dedication of these professionals is pivotal in overcoming challenges and shaping the future of the insurance sector.

>>>The writer is a chartered insurance Practitioner (CII, UK) and holds a professional qualification in Risk Management (ARM) from the American Insurance Institute. He has over nine years’ experience in insurance, reinsurance and risk management. He is currently a manager at Star Assurance Company. He can be reached via +233249236939 and or [email protected] / [email protected]

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