Insurers urged to target informal sector
Acting Commissioner of Insurance, Michael Kofi Andoh has urged insurance companies to develop policies and products that will target the informal sector of the economy.
Advertisement
He said the products must offer value to workers in the informal sector who are often left out of financial services.
Consequently, he has challenged insurance agencies to develop insurance policies that offer value to those in the informal sector.
By so doing, he said the informal sector would patronise their products and services, which he said would also help to close the widening gap between the informal sector and the insurance companies.
He noted that to convince artisans such as petty traders, hairdressers, carpenters, masons, dressmakers, tailors, craftsmen, women and other skilled workers to buy an insurance package, they must be assured of the benefits derived from it and guaranteed a timely feasible redemption when the need arises.
“The availability of products designed specifically to meet the informal sector players' needs has become a big challenge. People keep buying the insurance but don’t get the opportunity to redeem their claims,” he stated.
He also stressed that his outfit is building the capacity of insurance companies to develop products for the informal sector while educating and training micro business operators across the country on the need for insurance in their work.
Speaking at the launch of the 2024 Insurance Awareness Month Celebration in Accra last Friday, Mr Kofi Andoh asserted that insurance penetration continues to hover around two per cent because of a lack of trust from clients toward insurers’ firms due to the unsuitability of products for their target markets and the inability to make claims.
“This brings about trust and confidence issues because people don’t get to see the value they buy; it is something we must work on,” he stated.
Addressing challenges
To address these challenges, Mr Kofi Andoh said his outfit has leveraged technology to develop digital solutions that can be easily accessed by clients to redeem their insurance packages.
He added that to improve the insurance value chain, his outfit organised the ‘Technological Forum’ last year, a platform that pitches technology experts with insurance agencies to find innovative solutions to challenges faced in the insurance sector.
"We are also looking at the excluded segment, with a focus on gender, where there are more women than men in the country, yet there are few insurance policies that specifically address the issue of women. We need to design products and services that cater to the specific needs of women,” he stated.
According to him, women form a majority of the informal sector and also form the majority of Ghanaians. He, therefore, tasked insurers to make an impact in that sector.
He also touched on Persons Living with Disabilities (PLWD) as part of the excluded sector who are vital public to be included in the insurance space.
“Another strategy we are using is the effective collaboration with development partners and inter-governmental agencies,” he noted.
He charged insurance agencies to also focus on micro businesses and SMEs that have a large informal population to increase their market.
Promoting inclusivity and accessibility
A member of the planning committee, Mercy Naa Koshie Boampong, revealed that the month-long celebration which climaxes on August 11 started with a media engagement two weeks ago.
She stated that the theme for this year’s celebration, dubbed ‘Promoting Inclusivity and Accessibility’, was chosen to dedicate this year’s celebration to PLWD and get them involved in the insurance market and space.
“There will be fun games at the Athletics Oval of the University of Ghana on July 20 and we are engaging in penalty taking, tug-of-war, draught, soccer, athletics and other interesting disciplines,” she stated.
She said July 24 to 27 will be the much-touted insurance fair which will be held at the forecourts of the Accra Metropolitan Assembly (AMA), and called on all insurance companies to take part in the fair.
Advertisement
Insurance fair
The Director of Marketing at Graphic Communications Group Ltd. (GCGL), Franklin Sowa, expressed his outfit’s commitment to the Insurance Fair which comes off on July 24 to 27 at the forecourt of the AMA.
He noted that the fair, which is partly organised and sponsored by the GCGL, affords exhibitors and insurance companies the opportunity to sell their products and services to the larger Ghanaian public.
“I entreat you all to register and join the fair to create more awareness about insurance and provide sufficient reason for Ghanaians to patronise insurance products,” he stated.
He assured that his outfit is committed to the fair and will continue to invest in them.
Advertisement