The Insurance Awareness Coordinators’ Group (IACG) have embarked on series of sensitization programmes to increase insurance awareness amongst Micro and Small Businesses in the country.
This is part of efforts by the Insurance Industry aimed at bringing insurance closer to the doorsteps of these Micro and small Businesses by making it more attractive and accessible for owners to purchase insurance products. Currently, insurance uptake (coverage) in the country is around 44.6%.
Speaking at the 2024 maiden event held in Techiman, in the Bono East Region during the Micro and Small Business Clinics on Insurance, the Commissioner of Insurance (ag.), Michael Kofi Andoh noted that, Ghana’s target to achieve insurance inclusivity especially to all Micro, Small and Medium Enterprises operating in the country is on course.
“MSMEs are a critical component of our economy and it is vital for them to be given the necessary sensitization on the importance and appropriate insurance policies in order for them to safeguard their businesses and livelihoods,” Mr Andoh said.
He stated that, this target could be achieved through intensifying awareness and increased demand for Micro-insurance products for the low-income segment of the Ghanaian economy.
He emphasized that creating appropriate Micro-insurance products to serve Small Businesses will help safeguard against any form of disaster should they occur.
The NIC Boss used the opportunity to explain how Small Business Owners can benefit from the right insurance policies, and gave the assurance that the insurance regulator [NIC] will step up public education on how insurance claims are processed.
“This will bring more confidence into the insurance industry,” Mr Andoh added. He therefore urged all MSMEs to get the appropriate insurance policies to protect their businesses. Some business owners also shared their perspectives on their patronage of insurance policies, including their understanding of and receptivity to insurance.
Some stated the lack of trust in insurance providers, unavailability of alternate coping mechanisms, consumers’ limited understanding of insurance, and the lack of public education and awareness of disaster risks.
He opined that if the about 80% of the working population of Ghana is in the informal sector, it makes sense that drawing closer to them would make insurance accessible and affordable to them which would ultimately translate into the growth of the economy.
About 400 participants attended the clinic held for market women, artisans and other vulnerable groups drawn from the Region.
The traders and artisans were drawn from Kintampo, Techiman, Tuobodom and other areas in and around the regional capital.
The Team will continue with the campaigns in Sunyani and Goaso, both in the Bono and Ahafo Regions respectively.
Participants were taken through an interactive session where they came face to face with understanding the nature of insurance and the various types of insurance that will benefit them.
Mr Andoh stated the fact that a nationwide campaign, which started in the Ashanti Region some time last year is what, is being replicated in in Techiman and would continue in Sunyani in the Bono Region as well as Goaso in the Ahafo Region.
Present at the Techiman event were Representatives of all insurance industry bodies and the German Development Corporation (GIZ).
IACG is an embodiment of the National Insurance Commission (NIC), the Ghana Insurers Association (GIA), the Insurance Brokers Association of Ghana (IBAG) and the Chartered Insurance Institute of Ghana (CIIG). Other stakeholders include the National Association of Ghana Insurance Agents (NAGIA) and the Ghana Insurance College (GIC). The German Development Cooperation (GIZ) supports the IACG.
