IBAG Launches Nationwide Campaign to Raise Awareness on Role of Insurance Brokers
The Insurance Brokers Association of Ghana (IBAG) has launched a nationwide public awareness campaign to educate Ghanaians on the importance of insurance broking and the distinct role brokers play in the insurance value chain.
The initiative, which forms part of IBAG’s annual Insurance Brokers Month celebration in October, is themed “The Insurance Broker – Your Gateway to the Insurance Market.” It seeks to demystify misconceptions surrounding the use of brokers and to highlight the professional value brokers bring to clients in securing and managing insurance policies.
According to President of IBAG, Shaibu Ali, underscored that the campaign stems from years of public misunderstanding about the function of insurance brokers.
“We realized that people in Ghana knew so much about insurance companies but very little about insurance broking. That’s why we instituted the month of October to engage the public and let them understand what broking is all about,” Mr. Ali stated.
Explaining the distinction between brokers and agents, he noted that while agents act as representatives of insurance companies, brokers operate independently to serve the interests of clients.
“The agent works for the insurance company. Whatever mistake or problem that the agent creates falls directly on the company. The broker, on the other hand, is an independent consultant who stands between the client and the insurance company and is responsible for his own professional conduct,” he explained.
Brokers Add No Extra Cost to Clients
Addressing misconceptions that engaging brokers increases insurance costs, the IBAG President clarified that clients do not incur additional charges when using a broker.
“Using the services of a broker does not cost the client a pesewa more. Rather, brokers can help clients save money because they know where to find the most suitable and affordable products,” Mr. Ali stressed.
He explained that brokers are compensated from the premiums paid to insurance companies, meaning clients pay the same amount whether they purchase policies directly or through a broker.
Mandatory Insurance Policies and Compliance
Mr. Ali further highlighted that under Insurance Act 2021 (Act 1061), several forms of insurance have been made compulsory in Ghana, including marine, fire, public liability, and professional indemnity policies.
“Any property with public access must have a public liability policy, and all medical, legal, and accounting professionals are required to hold professional indemnity cover,” he said, adding that the penalties for non-compliance have become stricter, including fines and possible imprisonment of between one and five years.
He emphasized that these compulsory insurances are designed to ensure financial protection and reduce the burden on government resources in the event of accidents or malpractice.
Call for Compliance and Professional Conduct
Mr. Ali urged the public and businesses to always engage licensed brokers to ensure compliance with regulatory standards and protection of interests.
“If you want to engage a broker, visit the IBAG or National Insurance Commission (NIC) website for a list of brokers in good standing. Our members are professionals who operate strictly within the law,” he assured.
He also advised the public to view insurance not as an expense but as a safeguard.
“If you think you don’t have money and so you shouldn’t buy insurance, that’s a big mistake. It is when you don’t have money that you need insurance the most,” he said.
About IBAG
Formed in 1988 with 15 licensed broker firms, IBAG now boasts 115 licensed members, including insurance brokers, reinsurance brokers, and loss adjusters. The Association represents the collective interests of brokers and serves as a strong advocate for insurance consumers nationwide.
The month-long campaign will feature media engagements, stakeholder dialogues, and public education drives aimed at deepening insurance penetration and strengthening consumer confidence in the insurance sector.
