Is Claims Payment the Real Issue with Ghana’s Insurance Industry—or Are We Missing the Bigger Picture?

Walk into any trotro, chop bar, or office break room in Ghana, and mention the word insurance. Chances are you’ll hear a few chuckles, a bitter story about claims delays, and a dismissive, “Massa, I don’t trust those companies.”

Yes, claims settlement —or the perception of how poorly it’s handled—has become the scapegoat for Ghana’s low insurance penetration rate (just around 2% according to the National Insurance Commission ). But let’s be honest: the “claims problem” may only be scratching the surface.

The Claims Payment Myth

It’s undeniable that some insurance brokers or insurance companies delay or frustrate customers during claims . A 2023 NIC report highlighted that claims complaints make up more than 40% of all customer grievances. This has created a narrative that insurance companies are quick to take premiums but slow to pay out.

But here’s the twist: data also shows that the majority of legitimate claims are paid—sometimes faster than customers expect. So why does the perception linger? Because insurers have a communication problem. When claims are paid, nobody hears about it. When claims are delayed, it spreads like wildfire.

The Real Issues Nobody Wants to Discuss

According to insights published in the Accra Street Journal, Ghana’s low insurance penetration has less to do with claims and more to do with three systemic challenges:

Lack of Insurance Literacy – Most Ghanaians don’t understand what they’re buying. Policies are written in legal jargon, and agents often oversell without explaining exclusions. Customers think insurance means “they’ll pay me no matter what”, only to get shocked when a claim doesn’t qualify.

Mistrust and Culture – Culturally, Ghanaians tend to lean on family networks, churches, or susu groups in times of crisis instead of relying on insurance . Why pay premiums for an intangible promise when you can “trust your people”?

Affordability and Informality – With over 80% of Ghana’s workforce in the informal sector, structured premium payments often feel like a burden. Many people live day-to-day and can’t commit to monthly deductions.

So, What Should Insurers Do?

Talk, Don’t Sell: Insurers need to simplify products, using everyday language instead of contract-heavy jargon.

Prove the Payouts: Highlight claims success stories publicly. People need to see and believe.

• Micro-Insurance for the Masses: Instead of pushing complex products, insurers should focus on low-cost, accessible options that fit the informal sector lifestyle.
• Partner with Fintechs: With mobile money dominating Ghana’s financial space , why aren’t more insurers embedding products directly into MoMo ecosystems?

The Bottom Line In Insurance Claims ?

Claims payment is a problem, yes—but it’s not the problem. The bigger issue is that insurance in Ghana has failed to build trust, relevance, and simplicity for the everyday Ghanaian. Until those gaps are fixed, penetration will remain embarrassingly low, and insurance will remain the “last option” for most people.

And here’s the hard truth: insurers can’t blame the public anymore. As Accra Street Journal put it bluntly, “The onus is on insurance companies to prove they are not just premium collectors, but genuine partners in financial protection.”