Sustainable insurance key to industry growth – Nashiru Iddrisu

The Managing Director of Hollard Life Assurance Co. Limited, Mr. Nashiru Iddrisu, has highlighted the potential of sustainable insurance to drive significant growth in Ghana’s insurance sector. Speaking on the “Zed in the Morning” show on Zed 101.9FM,

 Mr. Iddrisu explained how adopting sustainable practices in insurance can increase penetration rates, improve customer value, and provide long-term benefits for both insurers and policyholders.

Sustainable insurance as a catalyst for growth

According to Mr. Iddrisu, sustainable insurance focuses on mitigating risks through environmentally friendly and socially responsible practices. By promoting such practices, insurers can reduce overall risk exposure, which in turn can lead to lower premiums for policyholders.

This, he argued, would make insurance products more affordable and accessible to a larger portion of the population, contributing to increased penetration rates in the industry.

“If you are practicing sustainable insurance, that should give you a lower premium to pay because you’re actively mitigating risks,” Iddrisu explained. He emphasized that preventing risks, rather than merely compensating for losses, is at the core of sustainable insurance. “It’s more about preventing it from happening. For instance, if you have solar panels, are energy-efficient, and conscious about reducing electricity consumption, that should earn you some discounts.”

Incentivizing Green and Energy-Efficient Practices

Mr. Iddrisu also discussed the concept of providing incentives for green building practices, which are a key component of sustainable insurance. He pointed out that companies and individuals who adopt energy-efficient methods, such as using solar panels, maximizing natural lighting, and incorporating energy-saving materials, should receive discounted insurance premiums as a reward for their efforts to mitigate environmental risks.

“When businesses in the real estate sector use green materials and energy-efficient methods, such as energy-efficient roofing and green building compliance, they should benefit from favorable insurance terms. We should be able to tell them, ‘If you use energy-efficient methods to build, we can offer you significant discounts,'” he added.

Shaping the Future of Insurance in Ghana

Mr. Iddrisu stressed that as more businesses and individuals embrace sustainable practices, the insurance industry must evolve to support and reward these efforts. He highlighted the growing demand for green building insurance policies and urged insurance companies to proactively engage with businesses in sectors like real estate, offering them tailored insurance packages that reflect their commitment to sustainability.

He further noted that sustainable insurance could also play a role in addressing broader challenges in the insurance sector, including low penetration rates. By aligning with global sustainability goals and offering innovative products that resonate with environmentally conscious consumers, the insurance industry could attract new customers and expand its reach.

Leveraging Technology for Sustainable Insurance

Mr. Iddrisu also underscored the importance of technology in supporting sustainable insurance. He pointed to the role of digital platforms and data analytics in helping insurers better assess risks and offer personalized products that align with customers’ sustainability goals. “As we move towards more green building insurance policies, technology will play a crucial role in assessing risks, offering better pricing, and improving the overall customer experience,” he remarked.

He believes that the integration of sustainable insurance with advanced technology can provide insurers with a competitive edge in the market, while also helping the industry contribute to environmental protection and economic development.

Conclusion

Mr. Nashiru Iddrisu’s insights on sustainable insurance highlight a transformative approach to the insurance industry in Ghana. By incentivizing environmentally responsible behaviors and embracing innovation, the sector can not only enhance its offerings but also drive significant growth and scale. As the world shifts towards sustainability, Ghana’s insurance industry stands to benefit by aligning with these global trends, offering value to both customers and the broader economy. The call for green and sustainable insurance practices presents a timely opportunity for stakeholders in the insurance sector to rethink their strategies and position themselves as key drivers of sustainable development in the country.