A new study has shown that inadequate knowledge and benefits of insurance is frustrating insurance growth in Ghana.
In particular, the poor insurance understanding has taken toll on efforts aimed at promoting micro-insurance in that country..
The study conducted on the industry in the country indicated that lack of understanding was higher in the low-income or informal market where there is a vulnerability to various kinds of risks that cannot be fully covered by social insurance.
According to the report of the study conducted by PromIGH, the general lack of awareness has resulted in a low insurance uptake with only 4.1 per cent of the total population having any insurance policy as at the end of 2010, the report identified.
PromIGh findings showed that in Ghanamost people were apathetic to insurance products because most of the insurance companies have failed to effectively communicate the benefits of their products to the public, which often results in a negative public perception of insurance.
In order to help bridge this gap, the study disclosed the National Insurance Commission (NIC), in collaboration with the Ghana Insurers Association (GIA) and the German technical cooperation (GIZ), has launched an awareness campaign, dubbed “Promoting Insurance in Ghana (PromIGH)” for the development of the sector in Ghana.
The pilot campaign was conducted in 2013 and ran through 2014 in order to test the feasibility and potential effects of a public awareness campaign. It was carried out in 20 communities in four districts, the study added.
The Project Manager for PromIGH, Mr Branko Wehnert, who presented the findings of the study recently, said the pilot campaign was aimed at improving access to and usage of insurance products by micro, small and medium-sized enterprises.
He said the monitoring and evaluation research suggested that the PromIGH micro-insurance awareness campaign was successful in increasing insurance awareness, explaining, “The results of the quantitative research showed marginal positive changes in both knowledge and attitude indices.
“The qualitative data suggested that participants who heard the radio drama or participated in the road show showed a greater range of knowledge about a more positive attitude towards micro insurance and insurance companies than participants who just heard the radio jingles,” he said.
Stakeholders in the insurance industry have expressed their preparedness to support efforts of government to boost the economy and create wealth among the growing population.