President of the Chartered Insurance Institute of Ghana (CIIG), Solomon Lartey, has challenged the long-held perception that insurers are reluctant to honour claims, revealing that companies paid an average of GH₵9.2 million in claims daily last year.
He disclosed that in 2024 the industry settled a total of GH₵3.3 billion in claims – comprising GH₵4 million daily from life insurers and GH₵5.2 million from non-life insurers.
“The perception that insurance companies are quick to collect money but reluctant to pay claims is absolutely untrue. Daily, insurers are paying millions of cedis,” Mr. Lartey stressed, calling for a shift in public mindset to boost insurance uptake.
He made the remarks at the launch of the SanlamAllianz Financial Education campaign, an outreach initiative aimed at promoting financial literacy and insurance adoption nationwide.
Despite the industry’s significant claims payouts, insurance penetration in Ghana remains low. The 2024 Financial Stability Review placed penetration at 1.0 percent, unchanged from previous years, while the new IFRS 17 reporting standard measured it even lower at 0.63 percent.
Acting Commissioner of Insurance, Dr. Abiba Zakariah, underscored the importance of insurance in national development, noting that businesses and households without cover struggle to recover from crises. “The fact that penetration remains at about one percent means only a small proportion of people take up insurance products. Promoting financial literacy is therefore essential,” she said.
SanlamAllianz General Insurance Ghana CEO, Mabel Nana Nyarkoa Porbley, said the informal sector presents the industry’s biggest growth opportunity, given that 92 percent of businesses in Ghana are SMEs. She explained that the campaign, supported by the NIC, Ghana Insurers Association (GIA) and CIIG, is designed to reach informal sector workers including traders, tailors, dressmakers, hairdressers and barbers.
The three-month pilot will be rolled out in Accra, Kumasi, Koforidua and Tamale through workshops, radio programmes and community engagements.
SanlamAllianz CEO, Tawiah Ben-Ahmed, added that the campaign is part of the company’s corporate social investment, aimed at equipping Ghanaians with financial confidence. “Every Ghanaian deserves the opportunity to live a better life through financial knowledge and access. Considering the sobering reality of low financial literacy and trust in insurance, we believe it is critical to embark on this initiative,” he said.
Source: theftonline.com
