Claims that insurance brokers struggle with trust when dealing with insurance companies have been firmly dismissed by the immediate past President of the Insurance Brokers Association of Ghana.
According to Shalbu Ali, the relationship between brokers and insurers is built on a shared professional foundation rather than suspicion or rivalry.
Responding to persistent public concerns about trust within Ghana’s insurance industry, Mr. Ali explained that insurance brokers and staff of insurance companies undergo similar professional training.
Many of them started their careers in the same classrooms, wrote the same professional examinations and were trained under the same regulatory and ethical frameworks. This shared background, he said, makes it difficult for brokers and insurers to be at odds with each other on matters of policy design and interpretation.
Why brokers rarely clash with insurance companies
Mr. Ali noted that brokers possess the technical competence to understand every detail of insurance policies issued by insurers. As a result, they are well positioned to assess policy documents and identify errors or inconsistencies where they occur. When such issues arise, brokers are able to engage insurers professionally and have them corrected.
According to him, this technical alignment ensures smoother collaboration rather than mistrust. He stressed that brokers are not outsiders to the system but integral participants who understand underwriting, claims management and regulatory compliance. This reality, he said, makes claims of widespread trust issues between brokers and insurers largely unfounded.
While dismissing claims of distrust between brokers and insurers, Mr. Ali pointed to what he described as the real challenge in the insurance market. He explained that problems often emerge when customers bypass brokers and deal directly with insurance companies without professional guidance.
In such situations, policyholders may not fully understand the terms, exclusions and obligations contained in their policies. This can lead to disputes at the claims stage, which then fuels the perception that the insurance industry cannot be trusted. Mr. Ali stressed that these challenges are often avoidable when a licensed broker is involved from the outset.
Why buying insurance through a broker offers greater protection
Mr. Ali used the opportunity to strongly advocate the use of licensed insurance brokers when purchasing insurance products. He explained that brokers act in the best interest of the client by scrutinising policy details, ensuring adequate coverage and confirming that the policy meets the client’s specific needs.
According to him, buying insurance through a broker offers peace of mind because clients do not have to worry about technical details. That responsibility rests squarely on the broker, whose duty is to check every clause and ensure that the policy is satisfactory before it is accepted. He added that this layer of professional oversight significantly reduces the risk of unpleasant surprises during claims.
Mr. Ali acknowledged that the insurance industry in Ghana has not always enjoyed high public confidence. He recalled that about two decades ago, trust issues were more prevalent. Policyholders could purchase insurance only to encounter difficulties when making claims later.
However, he emphasised that the industry has undergone significant reforms since then. Improved regulatory oversight, better professional training and stronger enforcement of standards have transformed how insurance business is conducted. These improvements, he said, have helped restore confidence and professionalism across the sector.
Stronger oversight and improved standards
According to Mr. Ali, the current insurance landscape is far more robust than it was in the past. Industry standards have improved, and oversight mechanisms are now stronger, offering better protection for policyholders. Licensed brokers and insurers are held to higher ethical and professional standards, reducing the likelihood of malpractice.
He explained that these improvements mean consumers can now engage insurance services with greater confidence, especially when dealing with licensed professionals. The presence of trained brokers adds another layer of accountability that benefits both insurers and customers.
In concluding his remarks, Mr. Ali urged the public to have confidence in licensed insurance brokers and insurers. He stressed that the industry has matured significantly and that many of the historical issues that once undermined trust have been addressed.
He encouraged consumers to verify the credentials of insurance professionals they deal with and to rely on licensed brokers who are trained to protect their interests. According to him, doing so not only enhances trust but also strengthens the overall integrity of Ghana’s insurance industry.
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