Insurance is at its infancy in Ghana compared to other countries, the Group CEO of Hollard Ghana, Mrs Patience Akyianu, has said.

According to her, in terms of penetration, it is just over one per cent.

However, in terms of utilisation, she noted that about 30 per cent of households have been estimated to use one insurance policy or the other, currently.

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Speaking on the Class Morning Show (CMS) on Class91.3FM on Monday, 30 August 2021, Mrs Akyianu, who appeared on the ‘Behind The Glory’ segment, said a lot of Ghanaians are yet to understand and know more about insurance.

She told show host Kofi Oppong Asamoah that: “Insurance is at its infancy in this country if you compare it [to other countries].

“In terms of penetration, where penetration is…from gross premium to GPD ratio or percentage, it’s still very low, just over one per cent. However, in terms of utilisation, about 30 per cent of households are estimated to use insurance, currently but many people still don’t know a lot about insurance.”

Commenting on why she left the banking sector to join the insurance industry, Mrs Akyianu said: “I came into the industry at the right time, at a time where there’s so much to do to make great impact and I was looking to make an impact. I was looking to do something significant with my career…”

In allaying fears that insurance is a waste of money, the Hollard Ghana CEO described insurance “as a force for social good”.

She explained: “The whole model is community-based and its toward improving the lot of people.”

“Being a human being,” she said “one day, something might happen for you to lay claim to all the premium that you’ve paid and you’ll realise that the claim amount that you actually get will be significantly more than any premium you’ve ever paid.”

“Insurance thrives on the pool system, so, we pool the premiums together and because it’s a risk management model that we use, not everyone will have an accident or not everyone will die at the same time so while you are having an accident somebody is ok, so you’ll be paying and we might use your contributions to pay somebody else but one day when that unfortunate incident happens, we’ll be there for you ready to come to your aid. So, [insurance] is never a waste of money, that moment will come for you to be able to claim and that is when you’ll start clapping for us…,” she indicated