Despite Ghana’s rapidly expanding financial sector, insurance penetration continues to hover below 2 per cent of GDP — one of the lowest in sub-Saharan Africa.
While many factors contribute to this problem, from economic constraints to public mistrust, one uncomfortable truth remains largely unspoken: a significant share of the problem lies within the industry itself — particularly among insurance agents and the companies that recruit them.
For years, poor training, unrealistic sales targets, and misleading marketing tactics have silently eroded public trust in insurance. Some agents, driven by pressure to meet quotas, resort to exaggerations or outright falsehoods to close deals. Others are simply ill-prepared to explain the complex terms of policies they sell. The result? Disappointed policyholders, frustrated claims processes, and a growing skepticism among Ghanaians about the entire industry.
This editorial by Samuel Kwame Boadu and Accra Street Journal explores how poorly trained or dishonest some insurance agents have contributed to Ghana’s low insurance uptake — and why both agents and their employers must share the blame.
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The Promise vs. The Reality of Insurance in Ghana
Insurance is meant to provide financial security and peace of mind. Whether it’s life, health, motor, or property insurance, the core idea is protection — the assurance that when disaster strikes, one’s losses will be covered.
However, for many Ghanaians, their experience with insurance has been the exact opposite. Many customers complain of misleading sales tactics, hidden clauses, and denied claims — issues that stem largely from what happens at the point of sale: the interaction between the agent and the customer.
The average Ghanaian does not fully understand insurance policies, and rightly so — they can be complex, filled with technical language. This makes the role of the insurance agent extremely crucial. But when that agent is either untrained, unethical, or under intense sales pressure, the result is misinformation, frustration, and ultimately, rejection of the entire concept of insurance.
The Problem of “Sales First, Training Later”
One of the biggest contributors to poor insurance culture in Ghana is the “sales-first” recruitment mentality that dominates many insurance firms. To quickly boost premium collections, some companies recruit large numbers of agents with little to no background in insurance, promising them commissions and bonuses for every policy sold.
Instead of prioritizing education, ethics, and long-term client relationships, these firms push their agents to meet unrealistic sales targets. New recruits are given minimal training — sometimes just a few days — before they are sent into the field to sell products they barely understand.
This has led to a generation of poorly informed agents who cannot accurately explain policy terms, exclusions, or claims procedures. When customers later find out that what they were told is not what their policy covers, they feel deceived — and that betrayal spreads fast by word of mouth, weakening public confidence in the entire industry.
Lying for Commissions: When Desperation Meets Targets
For many insurance agents in Ghana, survival depends on meeting monthly or quarterly targets. Commissions are often their only source of income, and those who fail to meet their quotas risk losing their positions.
In this high-pressure environment, some agents resort to unethical tactics:
- Promising unrealistic benefits (“You’ll get your money back even if nothing happens”).
- Omitting key exclusions (failing to mention that certain risks aren’t covered).
- Downplaying waiting periods or conditions for claims.
- Convincing customers to buy unnecessary add-ons for higher commissions.
This deceptive approach may yield short-term sales, but it causes long-term damage. When policyholders later realize they were misled, they not only cancel their policies but also warn others against buying insurance. Over time, the industry becomes associated with dishonesty — a perception that has severely hurt penetration rates.
Insurance Companies Must Also Share the Blame
While it’s easy to point fingers at agents, insurance companies are equally at fault. Many of them:
- Recruit carelessly, valuing numbers over quality.
- Provide minimal oversight, failing to monitor how agents represent their brand.
- Neglect agent welfare, creating financial desperation that fuels unethical behavior.
- Lack continuous education systems, leaving agents out of touch with new policies and regulatory changes.
The National Insurance Commission (NIC) has in recent years intensified efforts to regulate agent licensing and training, but enforcement remains inconsistent. Some firms still operate informally, using temporary or unregistered salespersons to push products without proper documentation or accountability.
Without serious investment in training and professionalization, the insurance agent system will continue to act as a weak link in Ghana’s insurance ecosystem.
When Knowledge Gaps Lead to Claims Disputes
Perhaps the most painful outcome of poor training is the chaos it creates when a claim is filed. Many agents, eager to sell, do not clearly explain the terms, exclusions, or claims process to clients. When accidents or deaths occur, policyholders — or their families — are shocked to find that:
- The cause of loss is not covered.
- Premiums lapsed, making the policy invalid.
- Required documentation is missing or incomplete.
- The waiting period was not over.
These disputes are not just administrative errors; they are the consequences of knowledge gaps at the agent level. Every time a claim is rejected or delayed due to miscommunication, it reinforces the narrative that insurance companies don’t pay — even when the real issue was misinformation at the start.
The Public’s Deepening Distrust
Public confidence in Ghana’s insurance industry has been low for years. Many Ghanaians associate insurance with unnecessary deductions, endless paperwork, and broken promises. This distrust is not irrational — it’s the result of real experiences, often beginning with an agent’s false assurances.
A 2023 NIC report revealed that many insurance complaints came from policyholders who said they were not properly informed of their policy details. The damage goes beyond individuals — it affects the collective willingness of the public to buy into any insurance product, whether life, health, or motor.
Until the agent-public relationship is rebuilt on transparency and trust, Ghana’s insurance penetration will remain stagnant.
The Way Forward: Professionalizing the Insurance Agent Role
To address these systemic problems, Ghana’s insurance industry must rethink how it recruits, trains, and supervises agents. Here are some critical steps:
- Mandatory Licensing and Continuous Training
The NIC should enforce strict licensing requirements and require periodic retraining for all insurance agents. Ongoing education ensures agents remain updated on new products and laws. - Ethical Sales and Accountability
Insurance companies must monitor how agents market their policies. Ethical breaches should attract sanctions, while transparent sales practices should be rewarded. - Shift Focus from Targets to Relationships
Companies should measure success by customer satisfaction and retention — not just premium volumes. Long-term trust yields more sustainable growth. - Better Agent Support Systems
Fair remuneration, health coverage, and job security for agents reduce desperation and promote honesty. - Public Education Campaigns
Insurance literacy among the general public must improve. Educated consumers are less likely to be misled, and more likely to hold unethical agents accountable.
Conclusion: Rebuilding Trust, One Honest Agent at a Time
Insurance should be a pillar of financial stability, not a source of confusion or frustration. Yet, in Ghana, the actions of a few untrained or dishonest agents have cast a long shadow over the industry.
If insurance companies and regulators fail to act, the cycle of mistrust will continue — and Ghana’s insurance penetration will remain one of Africa’s lowest. But if they commit to ethical recruitment, proper training, and stronger oversight, the industry can finally win back the confidence of the Ghanaian public.
It is time to rebuild the foundation of trust — one honest, well-trained agent at a time.
