IBAG raises concerns over non-insurance institutions selling insurance products

The Insurance Brokers Association of Ghana (IBAG) has raised concerns over the growing trend of non-insurance institutions, particularly financial entities, selling insurance products to consumers.

At the 2024 Media Soiree in Accra, IBAG President Shaibu Ali warned that this practice is leading to negative experiences for clients and damaging the reputation of the insurance industry.

“A lot of the bad publicity that the insurance industry is attracting is from businesses sold by these non-insurance institutions,” Mr. Ali stated, noting that while these entities may find it easy to sell policies, significant issues often arise when claims are filed.

He urged the public to ensure they purchase insurance only from qualified, licensed, and authorised insurance institutions.

The event, which coincided with IBAG’s Broker Awareness Month campaign, brought together senior editors and media professionals to discuss how the media can help educate the public about the role of insurance brokers and promote informed insurance practices.

Insurance brokers, Mr. Ali explained, are independent intermediaries who represent the interests of clients rather than insurance companies.

Their role is to help individuals and businesses secure the right insurance policies at the most competitive rates, while also providing guidance throughout the claims process.

“There is marked difference between us and agents of insurance companies. Insurance brokers are independent professional intermediaries, who represent the interest of their clients who buy insurance,” Mr. Ali explained.

He stressed that brokers not only assist in the purchase process but also support clients through the often complicated claims process, ensuring their interests are fully represented. Importantly, these services come at no extra cost to the client.

Media support

The IBAG President called on the media to play an active role in correcting misconceptions about insurance and to help combat misinformation that stems from the activities of non-insurance institutions selling insurance products. .

He noted that clients often face challenges when claims are made on policies sold by financial institutions that are not specialized in insurance.

“We see you as a major stakeholder in the crucial role of helping to disseminate insurance education in Ghana,” he told the media.

He urged the media to partner with IBAG to ensure that Ghanaians understand the benefits of working with licensed insurance brokers who can offer expert advice and personalised services.

Mr. Ali invited the media to support IBAG’s efforts to promote insurance education and to work together to build public trust in the insurance industry.

“Let us work in the interest of the public and the country at large,” he said.

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