The Managing Director and Chief Executive Officer of Sanlam Allianz Life Insurance Ghana, Mr. Tawiah Ben-Ahmed, has identified ignorance, not poverty, as the major barrier to the low insurance uptake in Ghana.
According to him, many Ghanaians, especially those in the informal sector, lack a proper understanding of insurance and its role in safeguarding livelihoods and businesses. This, he said, has resulted in widespread misconceptions and mistrust, which continue to undermine the industry’s growth despite the availability of innovative insurance products.
Mr. Ben-Ahmed emphasized that the core challenge facing the insurance industry is not affordability, but the general lack of financial literacy among the population. “Insurance is not just a cost; it is a buffer that protects you when life’s uncertainties happen,” he explained.
He noted that while many Ghanaians are willing to invest in ventures, goods, or properties, they often fail to insure them due to limited understanding of the value insurance provides. “If people understand this better, they will be more willing to purchase policies,” he stated.
Mr. Ben-Ahmed believes that financial literacy should be prioritized as a national development agenda, stressing that it must be introduced from the basic school level and reinforced through community and media education. “We must make financial literacy a national priority, starting from the basic level. When people understand risk and financial planning, insurance penetration will naturally improve,” he added.
Ghana’s Insurance Penetration Still Below 3%
Despite the growth of Ghana’s financial sector, insurance penetration remains alarmingly low—below 3%. This, according to industry experts, is far below the levels needed to enhance economic resilience and social protection systems.
Mr. Ben-Ahmed described this as a worrying trend, considering the crucial role insurance plays in providing financial security and stability in times of crisis. “Insurance is a key pillar of any economy. It cushions households and businesses against shocks, whether from accidents, illness, or natural disasters,” he said.
He also noted that although insurance companies have introduced more flexible and affordable policies tailored for different income groups, uptake remains slow. This, he said, is largely due to the knowledge gap that leaves many Ghanaians unaware of how insurance products work or how to benefit from them.
The Sanlam Allianz MD called for stronger collaboration between insurance firms, regulators, policymakers, and the media in deepening financial education nationwide. “Strengthening financial education should be a shared responsibility among all stakeholders,” he noted.
According to him, regulators such as the National Insurance Commission (NIC) have been making strides in promoting public education, but greater effort is needed to reach the informal sector—where most Ghanaians work and remain uninsured.
Mr. Ben-Ahmed proposed that insurers partner with trade associations, market unions, and community groups to demystify insurance and make it more relatable to ordinary people. “When people understand how insurance directly benefits their businesses and families, they will see it not as a luxury but as a necessity,” he explained.
Simplifying Processes and Building Trust
Beyond education, Mr. Ben-Ahmed stressed that the insurance industry must also work to simplify policy processes and build trust among clients. Many people, he said, are hesitant to take up insurance because of negative past experiences or perceived delays in claims payment.
“To build trust, insurers must prioritize transparency, efficient claims settlement, and customer service. When clients see that insurance companies deliver on their promises, confidence in the system will grow.”
Mr. Ben-Ahmed
Sanlam Allianz Life Insurance Ghana, he noted, is committed to ensuring that clients receive prompt and fair claims, while continuing to innovate new products that meet evolving needs in health, education, and business protection.
Mr. Ben-Ahmed highlighted the importance of innovation in making insurance more accessible and appealing to Ghanaians. He explained that digital transformation is enabling insurers to reach underserved communities through mobile platforms and online channels.
“Digital tools are changing how people interact with insurance. With mobile technology, we can now provide micro-insurance products that are affordable and convenient, even for people in rural areas.”
Mr. Ben-Ahmed
He further added that digital platforms also enhance data collection, improve customer engagement, and promote transparency, which collectively help to rebuild public confidence in the sector.
Towards a More Resilient Insurance Culture
Mr. Ben-Ahmed concluded that for Ghana to achieve meaningful growth in insurance penetration, there must be a cultural shift in how people perceive insurance. “We need to move from viewing insurance as an expense to recognizing it as an investment in our future security,” he urged.
He reaffirmed Sanlam Allianz’s commitment to supporting national efforts to increase financial literacy, expand coverage, and strengthen Ghana’s insurance culture.
“At Sanlam Allianz, we believe that financial empowerment begins with understanding. When people are informed, they make better financial decisions—and that includes protecting what they value most through insurance.”
Mr. Ben-Ahmed
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