The Ghana Insurers Association (GIA) has told Citi Business News it will come out with a comprehensive data base of all insurance holders in the country to help reduce insurance fraud.
The move is also targeted at improving information sharing among insurance companies to synchronize information provided by clients.
Speaking to Citi Business News at a forum organized by Dun and Bradstreet Credit Bureau Limited, the Chief Executive Officer of the GIA, Mr. Atsu Menyawovor maintained that the database which will be completed by end of this year will help to reduce insurance fraud.
“When somebody presents a risk for insurance and you know the past history of that risk, for instance the risk was with another insurance company, and you have information on the database, that would show some vital information about this new client,” he explained.
He was of the view that such a database will provide insurance companies an opportunity to better price insurance premiums.
“We will be able to assess that risk better. Maybe a client has made a number of claims from the other companies which have made him a bad risk, we will be better informed to price the risk properly because the lost history is very important in determining how much premium to collect from the person.
He pointed out that information asymmetry is an expensive factor in the insurance industry, hindering industry players from properly pricing premiums.
Mr. Menyawovor was of the view that getting all the needed information on a client could aid in reducing the price.
He maintained that the use of the database will greatly help the industry to grow.