Industry players have called for increased patient capital, stronger partnerships and greater collaboration to help expand inclusive insurance across Ghana, arguing that millions of people in the informal economy remain without adequate financial protection despite growing innovation in the sector.
The stakeholders said although more than 80 per cent of Ghana’s workforce operates in the informal economy, many inclusive insurance products struggle to move beyond pilot stages due to limited funding, weak distribution networks and low public trust.
The call was made during a forum on inclusive insurance organised by the United Nations Development Programme (UNDP) Ghana under the theme, “From Innovation to Market Impact.”
The event brought together insurtech firms, insurance companies and the National Insurance Commission (NIC) to discuss practical strategies for increasing insurance coverage among underserved populations.
Participants identified inadequate financing, limited distribution channels, underwriting constraints, low awareness and trust deficits as the major barriers preventing inclusive insurance from achieving large-scale adoption.
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Chief Executive Officer of Microinsurance Master, Mr Gideon Ataraire, said the challenges facing inclusive insurance were similar across Ghana, Ethiopia, Nigeria and Uganda because many innovative products did not fit traditional insurance business models.
He explained that while startups could successfully reach a few thousand customers independently, expanding to millions required partnerships with organisations that already had extensive customer networks.
“Startups may reach five or ten thousand customers on their own, but scaling requires access to aggregators who already serve millions of people. They also need underwriting partners willing to understand their innovations,” he said.
Mr Ataraire stressed that sustainable growth in inclusive insurance would depend on patient investment capital, strong distribution partnerships, supportive underwriters, customer-focused product development and efficient claims management.
According to him, success also requires alignment across the entire insurance ecosystem.
“Partners across the entire ecosystem must align around this vision. Aggregators, underwriters, distribution channels and support systems all need to understand and embrace inclusive insurance’s unique model. Without alignment, even well-designed products fail to reach scale,” he added.
Chief Executive Officer of aYo Ghana, Mr Francis Gota, noted that inclusive insurance businesses often operate on extremely low profit margins, sometimes generating as little as one dollar per customer, making the sector less attractive to many investors.
He therefore urged larger financial institutions and corporate organisations to open their distribution channels to inclusive insurance providers to help innovative products reach underserved markets.
“We must help inclusive insurance firms move from pilot to scale through a combination of adequate funding, distribution access, supportive underwriting partners, customer-centric design and flawless claims execution. Missing even one element can undermine otherwise promising innovations,” he said.
Mr Gota also underscored the importance of prompt claims settlement, describing it as a key factor in building customer trust and confidence.
“The solution involves making claims processes flexible and accessible, ensuring customers receive real value at the critical moment they need it most. This is where vulnerable populations convert from sceptics to brand advocates,” he added.
Head of Supervision and Market Development at the National Insurance Commission, Mrs Stella Jonah, urged industry players to build stronger partnerships that support the objectives of inclusive insurance while designing products that respond to the realities of underserved communities.
“Innovation in insurance must be matched with strong partnerships and a clear understanding of market needs. To close the protection gap, we must design solutions that are practical, inclusive and capable of earning the trust of the people we serve,” she said.
Mrs Jonah encouraged insurance providers to adopt human-centred product design by engaging directly with target communities to better understand their needs and expectations.
She observed that because insurance requires customers to pay for protection before receiving any benefit, service providers must consistently demonstrate reliability throughout the customer journey.
“Insurance asks customers to pay before receiving any benefit, often when they are most vulnerable, so providers must prove reliability at every stage, from onboarding through to claims, or risk losing customer confidence permanently,” she stated.
Also speaking at the forum, Ms Rachel Ameyaw of Enterprise Life called for greater investment in simple, trusted and sustainable insurance solutions backed by technology, actuarial expertise, efficient distribution systems and strategic partnerships.
She said improving public confidence and strengthening service delivery would play a critical role in expanding insurance access across the country.
National Coordinator of UNDP Ghana, Dr Amina Sammo, urged governments, development partners and private sector institutions to work together to bridge Ghana’s insurance protection gap.
She said stronger collaboration and sustained investment in inclusive insurance solutions would ensure vulnerable populations are better protected against unexpected financial shocks.
“Closing the insurance protection gap will require bold collaboration across innovators, the private sector and government. We must invest in solutions that are simple, trusted and built to last so that no one is left behind in moments of shock and uncertainty,” she said.
