The value of insurance: why it matters to you

The First Vice-President of the Ghana Insurers Association (GIA), Nashiru Iddrisu, has urged Ghanaians to make insurance an integral part of their lifestyle.

He emphasised that insurance was a vital tool for mitigating financial risks and uncertainties, and encouraged individuals to make it a habit to invest in insurance policies.

Speaking at the launch of the 2024 Graphic Business-Ghana Insurers Association (GIA) Insurance Fair held at the Accra Metropolitan Assembly Gardens last week, Mr Iddrisu debunked common misconceptions about insurance policies, assuring the public that insurance companies faithfully fulfilled their commitments to policyholders when claims were made.

Mr Iddrisu emphasised that insurance companies only rejected claims deemed suspicious after rigorous investigation, urging the public to embrace insurance due to its substantial benefits.

He mentioned that insurance companies were expected to pay out a daily total of GH¢5 million in claims this year, a clear indication of their commitment to fulfilling their obligations to policyholders.

The Daily Graphic fully supports the insurance industry's call to action, as insurance aims to reduce financial uncertainties and manage accidental losses for subscribers. We recognise that insurance involves paying a small fee to transfer risk to a professional insurer, who promises to pay out in case of loss. This fundamental principle of insurance is often misunderstood, leading to misconceptions and scepticism among the public.

Despite this, many Ghanaians hesitate to sign up for insurance policies, citing concerns about waste and mistrust of insurance companies. Some view insurance premiums as an unnecessary expense, while others doubt the ability of insurance companies to honour their claims. These concerns are valid, but they should not overshadow the numerous benefits of insurance.

However, we believe that insurance is a vital investment in securing one's life and property. We have seen market vendors suffer losses due to fires, only to regret not having insurance.

We have witnessed individuals and families struggle to recover from unexpected medical expenses or accidents, only to realise the importance of insurance too late. These experiences highlight the need for insurance in our daily lives.

To address this, we have partnered industry players to educate the public about insurance through the insurance fair, aiming to increase awareness and change minds. Our goal is to empower individuals and businesses to make informed decisions about insurance, recognising its value in mitigating risks and uncertainties.

While insurance cannot prevent risks, it can provide for losses. Those who have benefited from insurance can attest that paying premiums is not a waste. In fact, insurance has saved countless individuals and businesses from financial ruin.

Currently, only vehicle insurance is compulsory in Ghana. We look forward to a future where home and market insurance become mandatory, providing a safety net for our communities.

The insurance industry has a critical role to play in supporting the country’s economic development. By providing risk management solutions, insurance companies enable businesses to invest and grow with confidence.

This, in turn, can lead to job creation, increased economic activity and improved living standards. As such, we urge the government to create an enabling environment for the insurance industry to thrive, including implementing policies that encourage insurance penetration and protect policyholders.

In the meantime, we urge insurance companies to develop attractive products that meet public needs, ensuring transparency and honesty in sales practices. Customer experiences will drive insurance penetration, so companies must train their sales teams to sell with integrity. This includes providing clear information, avoiding misleading claims, and delivering on promises.

We reiterate the importance of insurance in our daily lives. It is a vital tool for managing risks, uncertainties and unexpected events. We encourage everyone to take advantage of the various insurance products available, from life and health insurance to property and liability insurance.

By doing so, we can build a more secure and resilient society, where individuals and businesses can thrive despite the challenges we face. Let us embrace insurance as a necessary investment in our future, and work together to create a brighter tomorrow for ourselves and generations to come.