The Acting Deputy Head of Business Development at First Insurance Company Limited, Dela Hosu, has noted that Life Insurance penetration in Ghana continues to suffer despite public education on its importance.
Mr. Hosu, who presented a check for GH¢150,272 on behalf of the First Insurance Company Limited to the family of a deceased client in Kumasi on Saturday, observed the current penetration rate of about 1.3 percent, remains a challenge in the industry.
He blames it on misconception that life insurance is difficult to access.
The situation he believes, puts the life of many people at risk in times of unforeseen situations.
The policy holder, Raphael Boama Bonsu who passed late last year, was a Senior Channel Executive at the Multimedia Group. The claim amount paid by First Insurance was one of the highest in the Life Insurance segment of the industry.
“Most people live on pay cheque to pay cheque; so, loss of the breadwinner’s income creates financial burden in families,” he observed.
The Ghanaian Life Insurance sector has recorded mixed fortunes over the years, largely because of low patronage even though it is considered to be a high-growth segment in the insurance industry. In April 2016, a report by Timetric Insurance Intelligence Centre forecast total life premiums would reach GH¢1.6bn (US$601.3m) by close of 2019 as a result of the growth of the middle class and the expansion of micro-insurance products.
However, the most sensitive area in insurance where Ghanaians have bad perception about the industry, is claims.
But Mr. Hosu assured that First Insurance Company Limited, which is one of fastest-growing insurance companies in the country after being licensed by the National Insurance Commission in 2015, is well-positioned to settle claims promptly.
He noted that the more an insurance company is willing to pay claims, the more customers have confidence to do business with them.
According to Mr. Hosu, research conducted by the First Insurance Company reveal that quite a number of people in Ghana are not adequately protected.
The essence of Life Insurance is to replace the breadwinner’s income in the event of premature death, he explained, adding, “Life Insurance is always important at the early stage of one’s life when you have young people depending on your income”.
The mission of First Insurance, according to Mr. Hosu, is to help middle-income families become adequately protected and financially-independent when death occurs to the bread winner.
“First Insurance believes that, by providing families with large sum assured at an affordable price, people can create generational wealth for their families” Mr. Hosu stated during the presentation ceremony.
He said First Insurance has uniquely designed two main products called Buy Term and Invest in Mutual Funds and Education Policy, which is a family-centred product providing financial soundness to the “large underserved middle-income segment of the market”.