Insurance companies in Ghana have been urged to prioritize transparent and comprehensive product disclosure to ensure that customers fully understand the terms and conditions of insurance policies before making a purchase.
This call comes as part of efforts to promote consumer protection and enhance trust and confidence in the insurance industry.
Michael Kofi Andoh, the Acting Commissioner of Insurance at the National Insurance Commission emphasized that customers should be provided with detailed explanations of policy terms, coverage limits, exclusions, premiums, and other relevant information to enable them to make informed decisions.
“We are coming out with the market conduct supervisory framework and this regulates mainly the insurance companies and the customers and the consumers on how they are treated, how products are designed, worded, and priced, and the disclosure of information to consumers. This would enable consumers to understand the products before they buy them.”
Mr. Andoh said this in Bolgatanga during the 9th annual conference and exhibition of the Insurance Brokers Association of Ghana (IBAG) held in the Upper East Region. Speaking under the theme “Building a Consistent Customer Service Culture: Tool for Increasing Insurance Penetration”, the Acting NIC Commissioner made a clarion call for insurance companies to prioritize good customer service as a means to boost insurance penetration.
Shaibu Ali, the IBAG President alluded that the major challenges of the insurance industry include lack of disposable income for consumers, lack of knowledge and appreciation of insurance by the populace, and economic challenges.
“Aside from these, however, one key reason for low penetration is the issue of bad customer service which is breaking the industry. And a recently published survey by the Ghana Customer Service Index, insurance placed last among a lot of providers,” he lamented.
Upper East Regional Minister, Stephen Yakubu entreated the insurance companies to play a vital role in safeguarding the financial security of businesses and individuals against risks and uncertainties.
He entreated the sector to continuously uphold the highest standards of professionalism to build trust and confidence among the public to shape the future of the insurance industry in this country.
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