NIC to implement market conduct supervisory framework-acting Commissioner of Insurance

NIC to implement market conduct supervisory framework-acting Commissioner of Insurance

The National Insurance Commission (NIC) is in the process of implementing a market conduct supervisory framework to help improve the fair treatment of customers by insurance firms.
The acting Commissioner of Insurance, Michael Kofi Andoh, said as part of the framework, the NIC would soon issue a directive of conduct of business for insurance institutions.
He said the directive would deal with regulatory requirements on issues such as product requirements and policy holder cancellation rights, provision and disclosure of policy information, claims processing and complaints requirements as well as requirements on the appointment and training of agents.

Annual Conference
Mr. Andoh was speaking at the opening ceremony of the ninth annual educational conference and exhibition of the Insurance Brokers Association of Ghana (IBAG) in Bolgatanga in the Upper East Region last Wednesday, March 20, 2024.
The four-day event, being attended by 230 insurance practitioners of companies as well as key industry stakeholders, was on the theme: “Building a consistent customer service culture: A tool for increasing insurance penetration”.
For example, he stressed that the directive would require all insurance companies to develop and publish service level standards on claims and complaints and to display a summary of their claims payment and complaint resolution procedures in every branch, contact and agency office.

Pivotal Role
He underscored the pivotal role of customer service culture in driving insurance penetration, saying “indeed, building a consistent customer service culture is not merely a desirable trait but an essential tool for expanding the reach of insurance services to previously underserved communities”.
He said to achieve meaningful progress in increasing insurance penetration, companies must adopt a multi-faceted approach that addresses the diverse needs and challenges facing the insurance public. “This could entail leveraging technology to enhance accessibility, tailoring products to suit needs and preferences, simplifying policies, enhancing transparency and prioritizing customer complaints” he said.

He added that it was incumbent upon stakeholders in the insurance industry to cultivate a culture of trust, transparency and integrity in interactions with customers towards enhancing their operations.
He stressed that by prioritisng the needs of clients and delivering satisfactory service at every touchpoint, it can instill confidence in the value proposition of insurance and foster long-term relationships based on mutual respect and understanding.

Outcome of survey
The President of IBAG, Shaibu Ali, said one of the key reasons for low insurance penetration was bad customer service, stressing “in the recently published survey of the Ghana customer service index, the industry took the last position”.
He noted that the industry’s abysmal performance in the customer service survey should be an issue of great concern for the players towards changing the status quo to improve the sector.

Registration of Members
The President of the Chartered Insurance Institute of Ghana (CIIG), Solomon Lartey, said as a means of weeding out charlatans from the industry, the CIIG was compiling a list of all insurance professionals in the country.
He added “this will enable us to have a database of all professionals as well as fish out non-professionals whose practices and conduct pose serious threat to the very existence of the industry”.
The Upper East Regional Minister, Stephen Yakubu, urged them to continuously uphold the highest standards of professionalism to build trust and confidence among the public to shape the future of the insurance industry.
He said “customers are the life-blood of every business as the happier and confident they are with services, the higher the patronage towards improving the economy”.