The National Insurance Commission (NIC) has outdoored a 12-member steering committee tasked with advancing an inclusive insurance programme aimed at increasing coverage among underserved populations in the country.
The committee, chaired by Stella Jonah, Head of Supervision at the NIC, comprises representatives from regulatory authorities, industry stakeholders, and government entities. Notable members include former Auditor-General Daniel Domelovo and Dr. Kingsley Kwabahson, Chief Executive Officer (CEO) of the Ghana Insurers Association.
Currently, insurance penetration in Ghana stands at a mere 5%, with micro-insurance access particularly limited. The programme aims to bridge this gap, with a special focus on high-risk sectors like agriculture. Parametric insurance, which offers payout mechanisms tied to predefined triggers, has been identified as a key innovation to address climate-related risks.
Acting NIC Commissioner, Michael Kofi Andoh, emphasized the initiative’s potential to empower vulnerable populations and foster economic resilience. “Inclusive insurance is pivotal for reducing poverty and supporting the informal sector, which constitutes a significant portion of Ghana’s economy,” he stated.
Aligned with national development goals, the initiative seeks to enhance access to risk management tools, contributing to sustainable economic growth and financial stability.
Key partners include the Ministry of Finance, Ministry of Health, and the National Health Insurance Authority, alongside international bodies like the United Nations Development Programme (UNDP). Amina Sammo, UNDP’s Insurance and Risk Finance Facility Coordinator, highlighted the initiative’s role in empowering low-income communities.
The insurance sector in Ghana faces hurdles such as low awareness, trust deficits, and operational inefficiencies. However, the Insurance Act, 2021 (Act 1061), provides a robust regulatory framework to support growth. It is considered that by prioritizing parametric and agricultural insurance solutions, the NIC will attract investment and unlock opportunities in underserved markets.
The steering committee will focus on actionable strategies to promote inclusive insurance products, improve public awareness, and address systemic barriers to adoption.
