Title: Assessing the Potential Demand for Non-Interest Insurance in Ghana: A Pathway to Ethical and Inclusive Coverage
Subtitle: Study highlights the need for increased awareness and trust in non-interest insurance to meet the evolving financial needs of Ghanaians.
Accra, Ghana – In a recent research study conducted by a team of experts, the potential demand for non-interest insurance in Ghana has been assessed, shedding light on the viability and benefits of this ethical and inclusive form of coverage. The study, titled “Assessing the Potential Demand for Non-Interest Insurance in Ghana,” delves into the awareness, understanding, and factors influencing the adoption of non-interest insurance among the Ghanaian population.
Non-interest insurance, also known as Takaful insurance, operates based on the principles of mutual cooperation and shared risk, aligning with ethical finance principles and promoting transparency, fairness, and social responsibility. The study reveals the urgent need for increased awareness and trust-building measures to pave the way for the widespread adoption of non-interest insurance in Ghana.
The research findings indicate that there is currently a low level of awareness and understanding of non-interest insurance among Ghanaians. This knowledge gap poses a significant barrier to the uptake of this alternative form of insurance, which offers a range of benefits such as ethical practices, profit sharing, and community-focused initiatives.
One of the key factors hindering the adoption of, especially, conventional insurance in Ghana is a lack of trust in the insurance industry. The study underscores the importance of building trust through increased transparency, enhanced consumer protection, and the development of strong ethical standards within the insurance sector.
Moreover, the research highlights the need for tailored marketing strategies to raise awareness about non-interest insurance and its potential benefits among diverse segments of the population. Collaboration with Islamic finance institutions and engagement with regulatory bodies are also recommended to create a robust regulatory framework plus an enabling environment for the establishment & growth of non-interest insurance in Ghana.
Dr. Ali Shaibu, lead researcher of the study, emphasizes the significance of these findings, stating, “Non-interest insurance has the potential to address the evolving financial needs of Ghanaians and foster financial inclusion. However, it requires a concerted effort from stakeholders to increase awareness, build trust, and create a supportive regulatory framework.”
The research paper concludes with a set of recommendations aimed at increasing awareness for non-interest insurance in Ghana & subsequent establishment of that alternative industry. These recommendations include targeted awareness campaigns, consumer education programs, industry-wide initiatives to enhance transparency and ethical standards, and collaborative efforts between insurance providers, regulatory bodies, and Islamic finance institutions.
As Ghana continues to strive for financial inclusion and ethical financial practices, the findings from this research study serve as a clarion call for the insurance industry, policymakers, and stakeholders to embrace non-interest insurance as a pathway to a more inclusive and socially responsible insurance landscape in the country to support economic growth.
With the potential to transform the insurance industry and meet the unique needs of diverse Ghanaian consumers, non-interest insurance holds the promise of a future where coverage is not only comprehensive and reliable but also rooted in ethical principles that benefit the entire society.
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Note: This article was culled from a research paper titled: *”Assessing the Potential Demand for Non-Interest Insurance in Ghana”*, published By The Research Team @ Islamic Finance Research Institute, Ghana [IFRIG]. You can find/ download the full research paper on our publications page @ www.ifrig.org