Insurance Law 1989 (PNDC Law 227) created the National Insurance Commission (NIC), which today runs under ACT 2021 ACT 1061.
The Commission's objective is to guarantee that the insurance industry in Ghana is well-managed, supervised, regulated, and controlled. Obviously, it is debatable to suggest that most consumers have mixed feelings about their insurance providers.
The general image of insurance firms is that they are extremely important yet disliked, that they are relied on but not trusted.
The NIC, as the country's leading regulatory body in charge of insurance and related concerns, determines industry-related policy choices based on research.
In light of this, the NIC partnered with the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH to launch the first-ever public perception, awareness, and confidence index in 2019. (GIZ).
In the year 2020, the NIC conducted a second round of study on the same indices in order to maintain track of development.
In 2021, the third round, dubbed Phase 3, was held. The present study in context is based on the Phase 3 cycle of research.
Consumer confidence, as assessed by the Consumer Confidence Index (CCI), is defined as the level of optimism about the status of the economy shown by customers of services, such as insurance services, through their saving and spending actions.
Consumers who are optimistic about their prospects are more likely to spend money, boosting economic growth.
The Phase 3 study is especially significant because the year was plagued by the COVID-19 epidemic and the resulting slowdown in economic activity.
According to PWC's study on COVID-19's impact on insurance consumers, COVID-19 may have an impact on service preferences, carrier loyalty, and attitudes regarding auto, homeowner, life, dental, and vision coverage, as well as retirement.
In short, financial stress is linked to dissatisfaction, so insurance companies may use this information to modify insurance plans, offer alternative pricing, and use digital technologies to gain a competitive advantage in the market, despite the overall economic slowdown caused by COVID-19 and other socio-economic stressors.
The present survey found that the knowledge index is 0.5132, which is 2.6 percent lower than the 2020 average knowledge index of 0. 5392. Males also had a higher knowledge index (0.5296) than females (0.4874).
The average perception attitude index was found to be 0.5308, which is four percentage points lower than the forecasted value of 0.5704 for 2020. Current clients (0.5502) had a higher favourable perception of insurance than former clients (0.5292) and non-clients in this case (0.5175).
More crucially, the average confidence index was 0.5813, 1.5 percentage points higher than the 2020 projection (0.5666).
The index values for current client, prior client, and non-client were 0.6367, 0.5596, and 0.5572, respectively. The index scores for locale were: Urban (0.6075), Peri-Urban (0.5573), and Rural (0.6075). (0.5758).
Despite the fact that Ghana has had a terrible year, several initiatives aimed at improving public image, understanding, and trust in insurance have generated favorable outcomes.
Insurance awareness and education activities throughout the seven regional NIC offices, as well as agency training programs, are among the interventions.
The following proposals will aid NIC's continuing intervention activities aimed at restoring public confidence, awareness, and confidence in insurance in Ghana following COVID-19.
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