The National Insurance Commission (NIC) initiated the Public Perception, Awareness, and Confidence (PPAC) survey in 2019 to assess public perceptions of insurance products and services in Ghana.
This assessment has been undertaken annually, making the current 2024 survey the fifth in the series.
Standardised questionnaires were used across all sixteen administrative regions, to target 1462 purposively selected respondents to evaluate their knowledge, attitudes, and confidence regarding insurance.
These surveys informs the NIC’s policy interventions aimed at increasing insurance penetration and improving the delivery of insurance services in the market.
In 2022, the study measured the impact of the global pandemic on public perception of insurance and analyzed the effects of the nation’s Domestic Debt Exchange Program (DDEP) on public views regarding insurance policies.
These analyses were relevant given the current health and economic situations. However, in the current year’s study, the focus on the DDEP and global pandemic was dispensed with, as they were found to be no longer relevant.
Instead, a new dimension was introduced: understanding the perceptions of non-insured households about insurance. This shift aims to explore untapped insights into why certain populations remain uninsured and how their perceptions can be influenced to increase insurance penetration. The specific objectives of the study included the following:
To assess the general public perceptions and understanding of insurance concepts, products and companies;
To assess the general public knowledge of insurance concepts, products and companies;
To assess the attitude of the general public towards insurance concepts, products and companies;
To assess the general public experiences regarding raising queries, complaints and disputes resolutions;
To identify issues that need to be addressed to improve public confidence; and to update the current Public Confidence Index in insurance with both national and regional perspectives.
Key findings and results
The main findings of the study are presented in the exhibits below;
Figure One (1): Distribution of Survey Respondents
N = 1462 (of which, Rural = 312; Peri-Urban = 510; Urban = 640)
Figure Four (4): Awareness and knowledge of insurance
Figure Five (5): Public perception and attitude towards insurance
Figure Six (6): Confidence in insurance products, services and companies
Figure Seven (7): Importance-Performance Matrix
Based on the Importance performance matrix in figure (7), respondent rated trust as most important sub-index with a mean score of 4.0, this was followed by relationship, protection ease and claims at 3.8 and loyalty at 3.5.
In terms of performance the insurance industry performed above the average score with trust at 3.15, relationship, protection ease and claims at 3.14 and loyalty at 3.04. From the study, all the sub-indices rated “Keep up the Good Work” quadrant indicating the industry meets the consumer expectations and should maintain with these strengths.
Trend of knowledge, perception and confidence index (2019 to 2023)
From the trend analysis, that the average knowledge index for 2024 was 64.8 out of 100, higher than the average knowledge index of 58.8 in 2023. The knowledge index has showed an increasing trend over the years of the study with 2021 having the least knowledge index of 51.3 out of 100. The increase could be attributed to the increase in the number of regulatory interventions and activities of various insurance stakeholders in Ghana. Figure 8 below, presents the trend of knowledge index.
Figure Eight 8: Trend of Knowledge Index (2019 to 2023)
Figure 9 presents the outcome of the trend analysis of the perception (attitude) of respondent. The perception index started at 55.0 out of 100 in 2019, increased slightly to 57.0 out of 100 in 2020, but experienced a decline in 2021 to 53.1 out of 100. However, in 2023 to 2024, the perception index remained relatively stable with an index of 52.7 out of 100 in the latter.
Figure Nine 9: Trend of perception index (2019 to 2023)
For confidence Index, it was revealed that there is consistent and significant improvement in the overall confidence regarding insurance concepts and companies. In 2019, the confidence index started at 46.5 out of 100, and it steadily increased in the subsequent years.
By 2024, the confidence index reached its highest value of 62.5 out of 100, indicating a considerable rise in confidence. This positive trend suggests that individuals in Ghana are becoming more confident in insurance as a means of risk protection and financial security. Figure 10 presents the trend outcome.
Figure Ten 10: Trend of confidence index (2019 to 2023)
Figure Eleven 11: Complaint and dispute resolution
Figure Twelve 12: Perception of non-insured households about insurance
Visit the National Insurance Commission Website for the full report
