Board Chairman of KEK Insurance Brokers, Mr. Felix Addo, has warned that the imposition of Value Added Tax (VAT) on insurance services could slow down the growth of the insurance sector, disrupt cash flows, and ultimately dampen enthusiasm for insurance among Ghanaians.
Speaking at a public lecture held in honour of the late insurance stalwart, Mr. Kwesi Essel Koomson, Mr. Addo described the new tax policy as a major challenge to both professionals and clients in the industry. According to him, the VAT adds up to 21% to the cost of doing business, a burden he believes the market is not ready to absorb.
“Even professionals are still catching up with what this tax means. It affects cash flow significantly. If I add 21% more to my cost, and I can only recover about 15%, there is a clear deficit,” Mr. Addo stressed. He added that such dynamics could force many individuals to abandon formal insurance entirely, leading to what he called “self-insurance,”a path the government itself has adopted for some assets. “That’s not good for our economy,” he cautioned.
Mr. Addo also highlighted the importance of entrepreneurship for national development, noting that KEK’s resilience after the death of its founder is a testament to the vital role entrepreneurs play in job creation and economic growth. “Very few entrepreneurs leave behind businesses that continue to grow. KEK is an exception, and such enterprises are crucial to the future of our economy.”
Meanwhile, Acting Commissioner of Insurance, Dr. Abiba Zakariah, used the occasion to call on industry stakeholders to align with the National Insurance Commission’s mission of making insurance accessible to every Ghanaian.
Paying tribute to the legacy of Mr. Koomson and KEK Insurance, Dr. Zakariah said, “The very purpose that we believe drove KEK was bringing relevant financial security to the doorstep of the Ghanaian. That is what we at the Commission intend to do.”
She urged players in the insurance space to unite around that vision: “Join the KEK dream, join the Commission’s dream, so together we can transform our industry to higher and better levels.”
She described KEK Insurance as more than just a business: “You are enablers of resilience, protectors of dreams, and stewards of progress.”
