Recently launched insurance firm, Bedrock Insurance Company Ltd, is determined to break through the fierce competition within the sector with a host of customer-centred innovations.

Key among these innovations is technology-compliant products and service offering and prompt claims payment.

Chief Executive Officer, Albert Eyeson-Ghansah, said Bedrock Insurance has already completed the rollout of infrastructure to support technology-driven products that will deliver true convenience to customers.

“We want people to be able to sit in their bedrooms, in their offices or wherever they may be and be able to go online, make enquiries about insurance and get a quotation, get the policy done…And even in an event of a claim, we should be able to pay your claim using the mobile money platform,” he said at a media encounter last week.

Mr Eyeson-Ghansah also explained that because prompt and hassle-free claims payment was so crucial to the Bedrock Insurance mission, fast claims payment has been tied to staff assessment and rewards – like the payment of end-of-year bonuses.

“We haven’t been around for long but for this short time that we have been around every claim reported we have paid the claim without stressing the customer. The Bedrock Fast-track Claims [or 'Three Before Three'] is that any claim that is up to GHS3,000 and reported before 3 pm is paid that same day.

“That is a demonstration that prompt claims payment is not just a cliché. It is not something that we are just saying. It is something that we believe in which we are living,” he said.

Bedrock Insurance, a wholly owned Ghanaian company, was officially launched on last Thursday, May 30 with a promise to make insurance effortless.

The company obtained its operating license from the National Insurance Commission (NIC) in December 2017 and commenced operations in February 2018.

The Insurance company’s suite of products provides timely protection to customers against liabilities they might legally be exposed to; as well as loss or damage to property under product offerings which includes; motor insurance policies, fire and allied perils policies, engineering policies, liabilities, general policies, accidents and marine.

Sector overview

Even though penetration is low, the sector generates significant profit year after year for industry players.

The sector plays a very important role in the economy, allowing individuals and firms to transfer risk for a premium. Industry experts believe that a robust sector will improve the stability of financial markets.

Profitability, firm’s growth rate, firm size, claim payment and liquidity are among the important traditional risk factors within the sector.

The Insurance Act, 2006, Act 724 section 80 and 81 mandates insurance companies to prepare and lodge their accounts and financial statement with the National Insurance Commission every quarter and every financial year.

The total gross premium generated by the first half of 2017 was GHS656,380,119. However, within the same period in 2018, the total gross premium generated by all the general insurance companies was GHS705,626,889.

This indicates that the gross premium within the same period was increased by GHS49,246,770 representing 13.32%.

Claims payment challenges

Claims payment has been the most sensitive area within the sector, with many Ghanaians having bad perception about industry players’ commitment to claims payment.

Commenting on this challenge, Mr Eyeson-Ghansah mentioned the non-existence of a reliable common database for Ghana’s insurance industry as the cause.

“We need to have a common a database in the industry and I think the regulator is working on that; where we can collaborate and share information. It must be some form of a bureau where we can all share information,” the Bedrock Insurance CEO said.

He reiterated that once the regulator, the NIC, sets up this common database, claims payment challenges such as delayed payment and deliberate attempts by persons or groups to cheat the system by requesting multiple claims payments from different companies would be significantly reduced.