Business

Group targets increase in insurance for GDP

The maiden IACG capacity-building workshop for insurance agents was held in Kumasi

Ghana’s insurance industry continues to record low penetration with less than two percent contribution to the country’s Gross Domestic Product (GDP).

But the Insurance Awareness Coordinators Group (IACG) is poised to help improve the current figure to about five percent by 2025.

“The industry’s less than 2 percent contribution to the country’s gross domestic product is worrying even though insurance enhances people’s net worth. It is important to remedy lapses in the insurance industry in order to boost public confidence,” says Wilson Quartey Tei, Chairman of the Group.

Speaking at the maiden insurance agents’ capacity building workshop in Kumasi, Mr Tei identified insurance as one of the key tools to remedy financial problems.

He, however, observed lack of understanding of insurance policies and clarity among reasons why the public do not trust insurance companies, adding that “services of insurance company must be as required by the public if we are to increase insurance penetration in the country”.

Mr Tei stressed on the need to build the capacity of insurance agents to enhance product development, delivery channels and sales, and customer satisfaction.

“As insurance practitioners, we need to understand the pulse and concerns of the market; and position ourselves with acceptance, strong value preposition for insurance business to thrive in Ghana and Africa,” he said.

President of National Association of Ghana Insurance Agents Isaac Kwame Amanor-Ofori said the training workshop is to reshape the operations of the industry.

He says the agents will be penetrating the informal sector, which he described as a big market.

The capacity building training workshop, organized by GIZ, was to improve the insurance skills and selling strategies of the agents.

By Ibrahim Abubakar|3news.com|Ghana

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