Institute to promote public trust in insurance
The new leadership of the Insurance Institute of Ghana (IIG) has pledged its commitment to promote public trust in the insurance sector in Ghana by placing high emphasis on professionalism.
Advertisement
The IIG, which is a group of professionals in the insurance industry, believes trust is an essential element for the growth of every organisation and society, specifically in the insurance sector due to the abstract nature of insurance products.
The new executive members of the IIG, led by Rev. Asante Marfo-Ahenkorah, have subsequently begun a number of activities aimed at helping the group meet its target of promoting trust in the sector.
The Vice-President of the IIG, Dr Gideon Amenyedor, in an interview said the insurance business was based on a promise to pay claims upon the occurrence of specific unfortunate events and insurance companies therefore, have a great responsibility in regards to building public confidence since the insurance product at its core is merely a promise to pay claims.
“The business of insurance, perhaps more than any other, is thus based on trust and commitment. The contract between the insurer and the insured is a contract of utmost good faith and requires honesty and trust from both parties,” he said.
He also explained that actions of the insurer that might be considered as breach of trust included uncertainty or ambiguity in the choice of wording, lack of clarity in the language of the policy and exclusion and limitation in the policy not clearly stated.
He said when the public believed there were certain provisions that were extremely in favour of the insurer, they in turn lose to trust in the operations of the insurance company; just like when the insurance company uses unfair and deceptive advertising and solicitation materials in its publicity.
“Trust can also be lost when genuine claims are not paid speedily. Insurers must always give as much consideration to the financial interest of their insured as they do their own financial interest and must also be obliged to thoroughly and promptly investigate all claims,” he said.
He therefore, advised that insurance companies showed a high level of professionalism in their operations which would include a high standard of education and training that prepare members of the profession and equips employees with the necessary skills required to perform their roles.
Lecture
At a lecture organised by the IIG on the theme, “Promoting public trust in insurance through professionalism,” the head of the insurance programme at the University of Ghana Business School (UGBS), Dr Albert Gemegah, proposed a framework to promote public trust through professionalism by using the example of Aldermanbury Declaration used by the Insurance Profession Task Force in the United Kingdom.
This framework includes focus on issues such as customer service policy, ethical conduct policy, qualification policy and continuing professional development policy.
Dr Gemegah, who is also a Board Member of the National Insurance Commission (NIC), said there was the need for the insurance industry in Ghana to build public trust and the Aldermanbury declaration provided a good starting point for achieving a high level of professionalism in the insurance industry.
He,however, added that the declaration might need to be adapted in the Ghanaian industry, taking cognisance of the peculiarities of the local market.