How Insurance Brokers Build Trust with Clients in Ghana: ASJ Intelligence Brief

An Accra Street Journal Business Intelligence Brief

Executive Introduction

Trust is the currency of insurance broking. In a market where insurance penetration hovers around just 1% of GDP and public confidence remains fragile, the ability to build and sustain trust is not a soft skill—it is a commercial imperative . The Insurance Brokers Association of Ghana (IBAG) has rolled out nationwide campaigns to deepen public confidence, explicitly acknowledging that many Ghanaians still underestimate the value of using a broker and often choose to deal directly with insurers, missing out on expert guidance .

Yet trust cannot be built through campaigns alone. It is earned through consistent professional conduct, transparent communication, and demonstrable client advocacy. This ASJ report examines how insurance brokers in Ghana build trust with their clients, drawing on the IBAG Code of Conduct, industry leadership perspectives, and the practical realities of the Ghanaian market.

Part 1: The Structural Advantage—Why Brokers Are Positioned to Build Trust

The insurance broker’s role in the value chain is fundamentally different from that of an insurance agent. This distinction is the foundation of trust.

The Broker’s Fiduciary Duty

Insurance brokers are independent intermediaries who represent the interests of clients, not insurance companies . Unlike an agent who is an extension of the insurer, a broker is an independent consultant who stands between the client and the insurance company, working entirely in the client’s interest .

This is enshrined in the IBAG Code of Conduct, which states unequivocally: “Members shall place the interests of their clients before any other consideration, including the broker’s own remuneration” . This fiduciary duty is not aspirational—it is a binding professional obligation.

The client benefit: The broker uses their industry knowledge to get the best terms of the policy possible for the client with regards to both pricing and scope of coverage, and ensures that if a genuine claim arises, the underwriter cannot wriggle out of paying it using technicalities which the client normally does not understand .

The “No Extra Cost” Proposition

A persistent misconception is that using a broker’s services attracts extra costs. IBAG President Shaibu Ali has been emphatic: “Using the services of a broker does not cost the client anything extra. With or without a broker, you pay the same premium. The broker is paid from the premium you pay to the insurance company” .

The broker’s fee is built into the premium under a section known as the “acquisition cost”—the cost of distribution included in the price . The client pays the same premium whether they use a broker or go directly to an insurer. If they don’t use a broker, the insurance company keeps that portion—but the client loses the professional service that a broker provides .

The trust-building effect: This “no extra cost” proposition removes a significant barrier to trust. Clients do not feel they are being charged for advice. They receive professional guidance at no additional expense.

Brokers as Market Gatekeepers

Brokers provide more than two-thirds of the total premium income received by Ghana’s primary insurance policy underwriters, particularly in general (non-life) insurance . This market position gives brokers leverage that individual clients do not have.

A broker knows the right price companies should charge, the right insurer to place a policy with, and the right terms and conditions that should go into a policy document . Individuals who deal directly with insurance companies often lack the technical knowledge to identify gaps or unfair clauses in their policies. The broker is trained to review policy documents, detect unfavourable terms, and negotiate on behalf of the client to secure better protection .

Part 2: The Professional Framework—The IBAG Code of Conduct

The IBAG Code of Conduct provides the ethical framework that underpins client trust. It is not a marketing document—it is a binding professional standard.

Core Principles of the Code

Source: IBAG Code of Conduct 

Claims Handling as Trust-Building

One of the most significant ways brokers build trust is through claims management. The moment of claim is when a client truly tests whether their insurance was worth buying.

“When a claim arises, the broker ensures it’s handled properly and fairly,” IBAG President Shaibu Ali has stated . Brokers step in and handle claims for clients: “All you need to do is notify them of the incident, provide the necessary documents, and they’ll deal with the insurer on your behalf. You don’t need to worry—you just go to sleep” .

Without a broker, policyholders may not even realise when an insurer is underpaying or acting unfairly. “The broker uses technical knowledge and industry leverage to negotiate better outcomes for clients. If you buy insurance on your own, you might just accept whatever is given to you—but with a broker, you have someone fighting for your rights” .

Part 3: The Trust Challenge—What Works Against Brokers

Despite the structural advantages and professional framework, brokers face significant headwinds in building trust.

Low Public Awareness

IBAG has acknowledged that while many Ghanaians are familiar with insurance companies, few understand the function and value of insurance brokers . This is why IBAG instituted October as a month for media engagements and public education, to help people understand what insurance broking is all about .

The Association’s campaign theme, “The Insurance Broker – Your Gateway to the Insurance Market,” is designed to correct widespread misconceptions and highlight the importance of brokers in promoting fair and transparent insurance transactions .

Political Interference and Corruption

The most serious challenge to trust in the insurance industry is political interference. Leading business executive Sir Sam Jonah has issued a strong warning over what he describes as “growing and systemic political interference” in Ghana’s insurance sector, cautioning that it threatens the industry’s integrity and public trust .

There’s a growing and deeply troubling pattern of political and socioeconomic interference in the conduct of insurance business in Ghana,” Jonah stated. He noted that contracts are increasingly being influenced by politics rather than performance: “Contracts are canceled not based on performance or merit, but because of political direction” .

Jonah also pointed to serious distortions in pricing, stating that “premiums are loaded fraudulently without any genuine assessment of risk, purely as a vehicle for the extraction of money” . He warned that the consequences ultimately fall on the public: “When things go wrong… it is not the politically connected individuals who bear the cost. It is the taxpayer… who pays… and receives nothing in return” .

IBAG President Stephen Kwarteng Yeboah has echoed these concerns, stating that Ghana’s insurance industry is becoming dangerously politicised and that “you need to have either a blue or green hat to be able to do insurance business in Ghana” .

Poor Recruitment and Training Standards

Another factor eroding trust is the quality of industry recruitment. IBAG President Shaibu Ali has called on insurance companies to upgrade their recruitment processes and working conditions of their sales executives to promote professionalism and ethical conduct . Clients often face challenges when making claims due to misinformation from field staff or a lack of proper policy information .

The solution: The IBAG is working with the Chartered Insurance Institute of Ghana (CIIG) to partner on broker-relevant education and improve standards through self-regulation .

Part 4: How Brokers Rebuild Trust—Practical Steps

At the 11th Annual Educational Conference and Exhibition of IBAG, insurance brokers were urged to take deliberate steps to rebuild trust in the industry by:

Source: IBAG 11th Annual Conference 

The Role of the Regulator

The National Insurance Commission (NIC) is tightening regulatory oversight to protect policyholders . Clients whose genuine claims are delayed or denied are advised to report directly to the Commission for redress. “If your claim is legitimate and the insurer has the capacity to pay, the NIC will compel them to do so,” IBAG President Shaibu Ali stated. “No customer should fold their arms and accept an unfair outcome” .

Verification: How Clients Can Check Broker Credentials

IBAG advises consumers to verify the credentials of brokers before engaging their services. There are about 150 licensed insurance brokers operating across Ghana, all approved and regulated by the National Insurance Commission .

If you visit the NIC’s official website or search online for licensed insurance brokers in Ghana, you’ll see a full list of approved brokers,” Ali advised. “Don’t just walk into any insurance company to buy a policy. Appoint a broker to represent your interests. They are your personal insurance advisers—not agents of the insurer” .

Conclusion: Trust as a Professional Discipline

Trust in insurance broking is not built through advertising—it is built through consistent professional conduct. The IBAG Code of Conduct provides the ethical framework: placing client interests first, maintaining confidentiality, avoiding misleading claims, and rejecting bribes and inducements .

But the framework is only as strong as the commitment to enforce it. Political interference, bribery, and poor recruitment practices are ongoing threats to trust . The IBAG President’s warning that “you need to have either a blue or green hat to be able to do insurance business in Ghana” is a stark reminder of the challenges facing the industry .

For the individual broker, trust is built through:

1. Competence: Knowing the products, the market, and the client’s needs

2. Transparency: Clear communication about costs, coverage, and exclusions

3. Advocacy: Fighting for the client’s interests, especially during claims

4. Consistency: Being reliable over time, not just at the point of sale

5. Integrity: Adhering to the Code of Conduct even when it is inconvenient

As the IBAG campaign states, “The Insurance Broker – Your Gateway to the Insurance Market” . But a gateway is only trusted if it is secure, professional, and genuinely serves those who pass through it.

Quick Reference: Trust-Building Principles

Last Updated on July 16, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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