Performance of the Microinsurance Industry in Ghana: The Role of Partner Agent Model
This study reviews microinsurance products in Ghana, and evaluates the awareness of low-income earners regarding these products. It is based on questionnaires administered to existing and potential microinsurance clients and focus group discussions with clients and MFIs.
The study highlights risks that low-income groups face, and emphasizes the relevance of microinsurance in protecting the poor. The two main distribution channels for microinsurance products in Ghana are the traditional partner-agent model and the partner-agent-agent-model initiated by Micro Insurance Agency, Ghana. The three kinds of microinsurance products available are micro funeral policy, National Health Insurance Scheme (NHIS) and Credit Life and Property Product (CLPP). While respondents had some awareness about NHIS, they had little or no knowledge about the other products.
The study makes recommendations for the National Insurance Commission and other stakeholders to ensure that microinsurance protects the poor against risks and complements other financial services. These include:
- Developing an insurance culture through awareness building;
- Expanding access points to make insurance more accessible;
- Developing innovative partnerships to increase points of sale;
- Performing frequent market reviews to know the changing insurance needs.
