Principals in the insurance industry have resolved to provide insurance cover for cyber-based risks most businesses encounter in the country.

Vice President of Ghana Insurance Brokers Association, (GIBA), Shaibu Ali said, “The amounts of monies that have gone in terms of cyber-based losses are huge. So it is necessary that we start to talk about this so that we position ourselves to provide cover or protection for our clients accordingly." 

“And what we are doing is that we do not have the capacity locally for that so we are collaborating with foreign providers as in insurance companies and reinsurers to provide us with the support to write the cover,” he said while speaking to JoyBusiness on the sidelines of the 5th GIBA Annual Conference and Exhibition.

Last February, a report released by Serianu Limited, an IT firm in Kenya has revealed that the economy lost a total of $50 million to cybercrime in 2016. Another report predicts that Ghanaian businesses are likely to lose $100 million from cyber-crime by end of this year.

The Cyber insurance, also known as Cyber Liability Insurance Coverage, is designed to help an organization offset costs involved with recovery after a cyber-related security breach and other malicious data attacks.

Digitization and Innovation

In a keynote address, Paramount Chief of Essikado traditional area, Nana Kobina Nketsia, challenged brokers to devise new ways, in the face of technology, to meet demands of their clients in order to sustain their business.

He said, “Should brokers be weary? Yes, because change has come. Innovations are taking place and brokers may soon find their traditional role being taken over by Insuretechs and Fintechs. Change is happening, and it will catch up or overtake you.”

President of GIBA, Lena Adu-Kofi is optimistic digitization can help remove some loopholes including double-insurance in the industry.

She said, “With the low level of insurance penetration in the country, the main industry players have a greater responsibility of educating the majority of Ghanaians and also marketing our various products and services leaving us with no option than to go digital; the new marketplace.”

“For example, is it not possible for us to develop an App that has shortcodes to help us to check the double insurances and also to authenticate drivers’ licenses? We have no doubt that going digital is the way forward,” she added.

On his part, Commissioner of Insurance, Justice Yaw Ofori, decried the situation where a large percentage of insurance products are not ready for automation.

He said, “A Deloitte study on tech trends for insurance revealed that insurance businesses realized the need to be more efficient and accessible in order to serve today’s policyholder.

However, while 63% of insurance businesses report their readiness to move towards more digital practices, only 23% of these businesses are actually ready,” he added.

Mr Ofori said, “Digital transformation goes beyond scanning a document with your phone and sending it via Whatsapp to your client or receiving a picture of the damaged vehicle.”   

The 5th Annual Conference and Exhibition brought together over 150 Executives and Senior Managers of Insurance Broking Firms, General and Life insurance companies and Re-insurance companies to discuss how they can leverage digital innovation to remain relevant on the market.

The 3-day conference and exhibition was under the theme, 'Embracing Digital Transformation and Innovation in the Insurance Business.'

The conference equipped insurers with perspective and tools to inform their strategies for digitization, network with peers and key industry leaders and update their technical know-how on insurance practice.