The National Insurance Commission (NIC), in its latest research conducted by the NIC has reported that the confidence of Ghanaians in insurance is on the rise.

According to the National Insurance Commission, the perception of Ghanaians about the insurance companies and their products hit an all-time high, noting that “it is perceived– though subject to debate that most people view their insurance providers with ambivalence.”

“The overriding perception of insurance companies is that they are very needed, but not liked, relied on, but not trusted.”
NIC Report

As the regulator of the insurance companies operating in the jurisdiction, the NIC conducted a survey to understand the people’s perception about insurance to effectively make policy decisions that benefit all.

In its Confidence index report, the Commission found that data increased to an all-time high since its first public perception, awareness, and confidence index in 2019.

“The Confidence Index (CI), however, has seen a significant increase, rising to an all-time high of 0.5813 from 0.5666 in 2020 and 0.4650 in 2019.”
NIC Report

Meanwhile, the confidence index of 0.5813 in 2021 is higher than the 2020 estimate by 1.5 percentage points.

The data, which was collected from a sample size of 1613, showed that while the confidence index increased, the knowledge index, saw a downward trend over the three-year study period.

“Knowledge index in 2019 stood at 0.5992. The figure in 2020 was 0.5392, while the knowledge index recorded in 2021 was 0.5132.”
NIC Report

The NIC is Ghana’s insurance industry regulator and has over the past few years been engaging personalities in all working categories to have a fair understanding and appreciation of insurance as a risk mitigating mechanism.

Plans By NIC to Further Increase Insurance Penetration

The National Insurance Commission (NIC), meanwhile, revealed plans of introducing regulations to guide the operations of technology-based insurance start-ups (insurtechs) in the country to further deepen the insurance penetration and awareness.

Dr. Justice Ofori, the Commissioner of NIC, commenting on the report, noted that the core mandate of the NIC is the protection of the interest of insurance policyholders to make sure everyone is treated fairly.

“The NIC’s objectives and functions per Sections 2 and 3 of the Insurance Act 2021, (Act 1061), include supporting and encouraging financial inclusion, promoting public awareness and undertaking public education on insurance and its products.

“I am delighted to disclose that following these efforts, the number of working Ghanaians who have one form of insurance or the other stands at 44.6 percent as of the end of year 2021. This is a phenomenal increase of 14.6 percent over the 2020 figure.”
Dr. Justice Ofori

Dr. Ofori explained that NIC is the supervisory and regulatory body of Ghanaian insurance industry and has for some time now championed the training of key categories of personnel as part of the Commission’s mandate of making everyone aware of the needs and benefits of insurance.

The Commissioner disclosed that the National Insurance Commission has achieved its target of training 10,000 youth as Insurance Sales persons for Ghana’s Insurance Industry. The training of the youth as insurance agents was instituted by the Commission in 2019 as part of its initiatives to help them develop careers in the insurance profession.