By Elizabeth PUNSU, Kumasi
Insurance companies in the country pay out more than GH¢8 million in claims every day, according to the National Insurance Commission’s (NIC) 2023 report. This figure, which includes both life and non-life insurers, challenges the widespread perception that insurance firms are reluctant to honour claims.
Speaking to journalists after a public awareness walk organised by the Ghana Insurers Association (GIA), Ashanti Regional Manager, National Insurance Commission (NIC), Faruk Dramani, who made the revelation, sought to dispel the long-standing perception that insurance companies do not pay claims.
“One of the biggest issues we face in the sector is the perception that insurance companies don’t pay claims. However, according to the National Insurance Commission’s (NIC) 2023 report, insurance companies—both life and non-life—pay over GH¢8 million in claims every single day. So, when people say insurers don’t pay claims, I personally have my doubts. That said, we must acknowledge that there are a few bad actors in the system,” he said.
Despite this significant daily payout, the industry continues to face challenges. The major among them being low penetration. Insurance penetration, which is the sector’s contribution to Gross Domestic Product (GDP), remains around 1 percent.
According to Mr. Dramani, this signals the need for faster growth in the sector, especially as the economy expands.
Although insurance penetration is low, actual coverage across the country is estimated to be between 40 and 45 percent. This suggests that many locals hold insurance policies, but most of these come with minimal premium payments. “Even when we seem to be doing well, the real issue is keeping pace with economic growth. We need to grow by settling claims properly and providing top-tier customer service,” Mr. Dramani highlighted.
He further indicated that the NIC has set up the Motor Compensation Fund to support victims of road accidents who, for legitimate reasons, are unable to receive compensation directly from insurers. This fund is reserved specifically for injury and death-related claims. Also, the NIC’s Complaints Management System (CMS) allows clients to file complaints online from the comfort of their homes.
Meanwhile, the Ghana Insurers Association (GIA) in an interview with journalists after the walk mentioned that it has resolved about 98 percent out of the over 3,000 complaints through its Complaints Management and Advisory Bureau (CMAB) since the platform was launched in 2018.
Head of Technical, Non-life Department, GIA, Ernestina Amankrah, said the CMAB was created to address the growing concerns of policyholders and to support insurance companies in handling client disputes effectively. “The CMAB handles complaints between clients and insurers, and most cases are resolved within a week. Flyers were distributed at the event to raise awareness of the service and encourage the public to use it. The initiative is part of the GIA’s ongoing efforts to boost public confidence in the insurance sector,” she added.
