Unstable exchange rate affects claims payment – Ghana Insurers Association

The Ghana Insurers Association has revealed that the unstable exchange rate regime has affected the payment of some claims to customers.

President of the Association, Seth Aklasi, therefore called for more sensitisation programmes for insurers on claims payment to ensure a continuous growth of the sector.

Mr Aklasi said a concerted effort among players is key to the growth of the sector.

“We have more challenge with the economic circumstances which you cannot control, the depreciation of the cedi that makes it way expensive and it’s very challenging”.

“We need to continue engaging people to support the sector because it is critical to the sector”, he mentioned.

Mr. Aklasi said the industry over the years has seen some improvement regardless of the economic downturn

“I’m sure the Industry has seen some improvement and as a result, we need to keep pushing to expand coverage”, he added.

According to Fitch Solutions, Ghana’s insurance market is set to see both life and non-life insurance growth at double-digit rates over the medium term.

Overall, insurance penetration is projected to remain at 1.0% due to the population’s lack of understanding of the benefits of life and non-life insurance coverage.

They added that as Ghana’s insurance industry remains underdeveloped, both life and non-life insurance should continue to offer promising investment opportunities over the medium term, owing to the fast-growing economy, falling interest rates, and robust consumer and business spending.