Ghana: Insurance brokers initiate public awareness campaign

The 2023 edition of the annual Insurance Brokers Awareness Month, organized by the Insurance Brokers Association of Ghana (IBAG), commenced on October and is scheduled to continue until the end of November.

IBAG, founded in 1988, serves as the official organization for licensed Insurance Brokers, Reinsurance brokers, and Loss Adjusters in Ghana. Over the past 35 years, it has evolved into a prominent entity in Ghana’s insurance sector, currently comprising 98 members.

One of the fundamental objectives of IBAG is to offer education to both its members and the broader public, which aligns with the purpose of its annual awareness month.

Explaining this at the launch of this year’s programme, IBAG’s President, Shaibu Ali asserted that: “Today’s gathering is driven by our commitment to this objective, which calls for educating the public on matters relating to insurance broking.  That’s why we have taken it upon ourselves to use this month to bring insurance broking to the front-burner for all and sundry to be aware of”.

It was disclosed that this year’s edition will place a strong focus on public education related to claims management.  “We aim to enlighten insurance consumers on the process of making claims – the necessary documentation, procedures and ‘dos and don’ts of the claims procedure”.

Over the next six weeks, the awareness campaign will involve a combination of radio and television interviews, educational activities on insurance, social media campaigns, and a press soiree.

Insurance broking plays a  role in enhancing insurance penetration and the quality of risk management offered to clients, presenting a compelling value proposition. In fact, approximately 50% of the insurance premiums received by Ghana’s insurance industry originate from business intermediated by brokers, who act on behalf of their clients when dealing with underwriters.

Nonetheless, the untapped advantages of insurance broking persist because numerous clients, both potential and existing, remain uninformed about the fundamental aspect that they are not responsible for the cost of broking services. Instead, it is the underwriter who compensates the broker in the form of a commission based on the premiums generated.

The advantages for clients who engage a broker are substantial, even though the services are cost-free. Brokers leverage their professional knowledge and experience to assist clients in accurately evaluating their insurance requirements, identifying the underwriter with the most favorable value proposition to meet those needs, and providing support in the event of a claim.