5 challenges facing life insurance in Ghana

5 challenges facing life insurance in Ghana

5 challenges facing life insurance in Ghana

A cross section of discussant at the roundtable event

Selling the importance of life insurance in the lives of individuals and families is usually not an easy task in Ghana. The penetration rate in Ghana is quite low, and the hope among industry players is that the increase in the country’s GDP per capita would see a corresponding increase in the life insurance penetration rate. 

5 challenges facing life insurance in Ghana

The Customer Experience Consortium (CXC) recently organised the first ever National Life Insurance Sales Roundtable under the auspices of the Ghana Insurers Association (GIA) and the Ghana Insurance Brokers Association (GIBA). The roundtable provided a platform for a discourse on the sales policies, strategies and approaches for the Ghanaian market.The event brought together major players in life insurance sales in the country on the theme, ‘Insuring Lives in Ghana: Challenges and opportunities “. From the roundtable discussions YEN.com.gh compiled the top 5 problems attributing to low life insurance patronage in Ghana according to to GIA:

1.      Bad perception/reputation people have on insurance in Ghana. The panelists proposed that to turn things around, there would be the need to tell the benefits or good stories of life insurance using the testimonies from people who have benefited from life insurance to debunk the myths surrounding life insurance policies in Ghana. This  could be done through interviewing of industry professionals to tell their experiences in the insurance benefits, and the use of online tools to share the benefits of life insurance.

2.      Low local insurance penetration in the insurance market - attributed to factors such as poor agent comprehension skills, poor agent motivation, bad image of the industry etc.

3.      Distribution problems or lack of proper channels through which the industry can distribute its products to the potential clients. Panelists proposed adding more channels such as online channels to allow users register to an insurance policy without meeting the agent in person.

4.      Fraudulent claims people make attributed to poor customer data to track and authenticate.

5.      Poor use of ICT which can be curbed by adopting  rigorous online search for insurance presence, adopting online insurance subscription to allow potential clients subscribe to an insurance policy online, as well as online enquiries on insurance by clients, among others.

5 challenges facing life insurance in Ghana
5 challenges facing life insurance in Ghana
5 challenges facing life insurance in Ghana

The Customer Experience Consortium is a business consultancy purposely set up to enhance volume of sales and quality of service in Ghana and over the past years they have been tackling industry specific sales through its innovative events, seminars and conferences.

5 challenges facing life insurance in Ghana

Source: Yen.com.gh

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