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Business News of Monday, 30 April 2018

Source: citinewsroom.com

Public mistrust stifling insurance sector – SIC boss

The Managing Director of the SIC Insurance Company Limited, Mr. Stephen Oduro has said low confidence and deep-seated mistrust of insurance companies is a source of worry for the sector.

“…The common challenge facing the industry is low public confidence coupled with a deep-seated mistrust of insurance companies.”

He attributed the issue to the very high expectations of insurance firms, bad claims payment experiences and the lack of clarity of insurance policy documents, among other things.

He, therefore, advised insurance firms to adopt innovative ways to rectify such issue saying if it is properly addressed it “will help minimize the erroneous public impressions about the insurance industry.”

A lot of people are of the view that insurance providers are quick to sell insurance packages to clients but are slow in releasing funds to clients who are due to receive monies.

Speaking at the 2018 Annual General Meeting of the West African Insurance Companies Association (WAICA), Mr. Oduro called on insurance companies to undertake a massive public education drive to clear such misconceptions about the operations of insurance sector saying “it is our responsibility to help educate the general public in order to improve the low awareness and understanding of insurance which has led to mistrust.”

Mr. Oduro also called on the companies to build the capacities of their staff to help boost the human resource in the sector.

“There could be no other effective approach to tackling issues of the industry than building adequate human capacity. A systematic attempt at training and retraining the human resource base across the industry is key to promoting the insurance industry.”

“It is very critical that the human resource base of the insurance industry is well motivated, adequately resourced in terms of job tools and competitively remunerated to ensure they acquire the inner drive to deliver effectively and efficiently,” he added.

The SIC Insurance Company MD also urged insurance firms to put structures in place to check “financial leakages” to ensure sustenance of their financial capacities.