The Proposal Form & Documentation

The Proposal Form Is Your Primary Tool

The proposal form is the underwriter's window into the risk. A well-designed proposal form extracts the right information to make a sound decision. A poorly designed one creates gaps that lead to either bad decisions or unnecessary back-and-forth with the proposer.

Common problems with proposal forms in the Ghanaian market:

→Too complex. A 12-page commercial fire proposal form intimidates SME owners and gets returned half-completed. Design forms that ask essential questions only.
→Too generic. Using the same form for a market stall and a factory means neither risk is properly assessed. Product-specific forms are worth the investment.
→Poor translation. Forms designed in English for a market where many proposers think in Twi, Ga, or Hausa. Consider bilingual forms for mass-market products.
→No guidance notes. Agents filling out forms on behalf of clients often misunderstand what's being asked. Include clear instructions for each question.

Essential Information by Product Line

Motor proposal: must capture:
→Vehicle details: make, model, year, chassis number, registration
→Value: purchase price, current market value
→Use: private, commercial, hire
→Driver details: age, licence type, years of experience, claims history
→Security: where parked at night, alarm/tracking fitted
→Cover required: third-party only, third-party fire & theft, comprehensive

Fire proposal: must capture:
→Property details: construction type, age, number of floors, total floor area
→Occupancy: what business is conducted, what stock is held
→Fire protection: extinguishers, sprinklers, fire alarm, proximity to fire station
→Previous losses: any fire incidents in the past 5 years
→Sums insured: buildings, contents, stock (separately valued)
→Neighbouring risks: what's next door? A fuel station changes everything

Life proposal: must capture:
→Personal details: age, gender, marital status, dependants
→Health: height/weight, smoking status, pre-existing conditions, current medications
→Medical history: family history of heart disease, cancer, diabetes
→Occupation: nature of work, hazardous activities
→Financial: income level (to justify sum assured), existing insurance
→Lifestyle: travel habits, hazardous hobbies

Beyond the Proposal Form

For larger or more complex risks, the proposal form is just the starting point. Additional documentation might include:

→Survey reports: An engineer or surveyor inspects the physical risk. Essential for large commercial properties, industrial risks, and construction projects.
→Financial statements: For business interruption cover, you need to verify the declared gross profit. For fidelity cover, you need to understand cash handling volumes.
→Medical reports: For life insurance above certain sums assured (typically GHS 200,000+), require a medical examination from an approved doctor.
→Loss history: Request claims experience from previous insurers. A proposer who has had three fire claims in five years across different insurers is a red flag.
→Photographs: Increasingly easy with smartphones. Photos of the property, vehicle, or business premises create a baseline record and can deter fraudulent claims.

The principle: the documentation should be proportionate to the risk. Don't require an engineering survey for a GHS 50,000 market stall. Don't accept a one-page form for a GHS 10 million factory.