Business News of Tuesday, 20 February 2018
Source: thebftonline.com
2018-02-20
Industry players say an annual publication of claims paid to clients will restore public trust
The insurance industry intends to start publishing claims paid to clients, on an annual basis, in a bid to change the perception among members of the public that the industry loathes claims payments.
“We are thinking, actually, of the insurance industry publishing the quantum of claims paid in a year, because the public think that the insurance industry just takes their money and does not pay claims,” said Wilson Tei, who is the National Chairman of the Insurance Awareness Coordinators Group.
“When we begin to publish, the public will be aware of how much claims are being paid and understand the need for insurance,” he said.
Mr. Tei made this known at the launch of a radio sensitisation campaign for consumer protection, championed by the National Insurance Commission and other partners in the industry and with funding from the German Development Cooperation (GIZ).
The week-long campaign is aimed at educating the public on the importance of risk management in life, to boost consumer confidence in insurance and ultimately increase insurance penetration in the country.
The project will run concurrently on twenty-one radio stations across the country between February 19 and 24, 2018.
Commissioner of the NIC, Justice Ofori, said sometimes delay in payment of insurance claims happens not because a company is unwilling to pay, but because agencies like the Police, hospitals and courts may have not concluded work on said cases.
“When it comes to claims, people have misconceptions that insurance people are quick to take premiums and are slow to pay claims. But claims payment demands investigations, and investigations can take time.
“Sometimes, some of the delays do not even fall with the insurance companies. The difficulty we have is coordinating all the activities with these institutions so that we can make claims payment fast.”
The Commissioner assured that his outfit, which serves at the regulator, will put mechanisms in place to address challenges that exist in the industry.