The National Insurance Commission (NIC) has launched a new strategic initiative aimed at expanding insurance coverage to Ghana’s informal sector, which accounts for nearly 80% of the country’s workforce.
Announcing the plan at the 3iC Inclusive Insurance Innovation Challenge in Accra, Commissioner of Insurance, Dr. Abiba Zakariah, said the initiative aligns with the government’s broader economic reset agenda and is designed to deliver financial protection to one of the nation’s most underserved populations.
“This is about restoring hope and providing a safety net for those who have long been excluded from formal insurance,” Dr. Zakariah said.
Boosting Inclusion through Innovation
The Inclusive Insurance Innovation Challenge showcased 10 companies pitching tailored insurance solutions for the agriculture sector, an area dominated by informal workers. Agricom Assurance emerged as the winner, followed by Wellmax and Resolut Business Solutions Limited in second and third place, respectively.
Dr. Zakariah noted that the Commission’s renewed focus is on supporting innovative insurance models that reflect the cultural and financial realities of informal sector workers.
“Past insurance products failed to consider the unique needs of this demographic. That is changing,” she said.
Technology as a Game-Changer
A major thrust of the new strategy involves leveraging technology to overcome structural barriers that have historically hindered insurance expansion, such as the high costs of physical distribution networks.
“Digital platforms will enable more efficient and affordable delivery of insurance products to people in rural and underserved areas,” the Commissioner explained.
Supporting Agriculture with Premium Subsidies
Recognising the financial constraints faced by farmers, especially in accessing insurance, Dr. Zakariah announced the upcoming introduction of an agri-insurance programme that includes a premium subsidy.
“This will lower the entry cost for farmers and encourage greater participation,” she said, adding that the move is critical to building resilience in the agricultural sector, which is heavily reliant on informal labour.
Tackling Low Insurance Penetration
Despite the sector’s potential, insurance penetration in Ghana remains alarmingly low, hovering at around 1% of GDP, far below the African average of 3% and the global average of 6%.
The NIC believes tailored products and digital distribution, alongside targeted incentives such as subsidies, will help address this disparity and bring millions of informal workers under coverage.
Rebuilding Trust in the Insurance Industry
Dr. Zakariah also acknowledged that lack of trust in the insurance sector continues to deter many Ghanaians from purchasing coverage.
“Trust remains a major barrier, and we are working to change that with a comprehensive strategy focused on transparency, service delivery, and consumer protection,” she said.
She emphasised that the Commission is committed to fostering a more inclusive, responsive, and trustworthy insurance industry that supports national development goals and uplifts vulnerable populations.
