Resetting Ghana’s insurance sector is our strategic focus

1.0 Introduction

In today’s evolving financial landscape, building a resilient and inclusive economy requires healthy support systems that protect individuals, businesses, and national assets. At the heart of this vision lies a sector often unheeded yet basically essential “INSURANCE”. As we chart a new path toward sustainable development and economic transformation, the growth of Ghana’s insurance sector has emerged as our strategic focus. Strengthening this industry is not just about financial security; it is about fostering trust, encouraging investment, and unlocking long-term prosperity for the people of Ghana.

2.0 The Role of the Insurance Regulator in Ghana

The National Insurance Commission (NIC), the regulatory authority for insurance operations in Ghana, operates under the Insurance Act, 2021 (Act 1061).

The NIC’s mandate is to ensure the effective administration, supervision, regulation, monitoring, and control of insurance business in Ghana. Its core object is to protect policyholders’ interest and ensure the development of a robust insurance industry.

3.0 The Three Strategic Pillars

In our “Resetting drive”, the NIC is committed to building a more efficient, fairer, safer, and more stable insurance market that promotes healthy competition and growth in the best interest of policyholders including the largely untapped 80% of the informal sector.

The Commission is driving this growth through the implementation of a comprehensive three-pillar strategy.

(i) Insurance Market Sanitization

A critical step in driving sustainable growth in Ghana’s insurance sector is building TRUST. To achieve this, we must first identify and eliminate unethical practices within the market, and provide clear, actionable recommendations to address them. To enable a more proactive and targeted regulatory approach we are:

• collaborating with industry to identify unethical practices and propose practical solutions as well as develop standardized rates and terms for various insurance product lines;
• enhancing the capacity and efficiency of our enforcement teams to detect and respond to market misconduct promptly through the implementation of the Risk-Based Supervision (RBS) framework along with other enforcement tools and;
• launching a Customer Satisfaction Index to improve service delivery across the industry.

(ii) Insurance Market Penetration

The second strategic pillar has led to the:

• establishment of the Insurance Penetration Committee, which is tasked with conducting in-depth analyses and providing strategic recommendations to expand insurance coverage across the country;
• creating “Campus Care”, insurance demonstration centers on university campuses to raise insurance awareness, develop insurance innovation and provide students with practical business experience;
• collaborating with the informal sector to design insurance products tailored specifically for them. So far, we have held sessions with executives of the Transport Unions and the Informal Workers Association;
• launching the Insurance Innovation Challenge, an initiative that invites the public to co-create practical insurance solutions;
• working toward supporting small-holder farmers by establishing an Agricultural Insurance Fund to help lower premium costs for farmers and enhance their resilience to agricultural risks and;
• exploring digital tools to enhance our engagement with the public and the insurance industry, while also streamlining internal processes for greater efficiency.

We are also working on strengthening the enforcement of existing compulsory insurance policies, including motor third-party insurance, marine cargo insurance for commercial imports, commercial property (fire) insurance, professional indemnity, and public liability insurance. Stakeholder consultations have been held, and implementation plans are underway.

We also recognize the vital role of technology in modernizing our operations and service delivery.

(iii) Making Ghana Insurance Hub in Africa

We are committed to making Ghana a hub for insurance. To this end, we are:

• driving insurance dialogues, innovation, collaborations, and funding across the continent to Ghana. We successfully hosted the Environmental Social and Governance (ESG) Africa Conference in Ghana, and are determined to bring more such high-level conversations and events to our country.
• We have initiated discussions on creating new insurance pools and expanding the operations of Ghana Oil and Gas Insurance Pool (GOGIP) and Ghana Agricultural Insurance Pool (GAIP) to other African countries to draw external income and;
• We are pursuing the creation and hosting of an African insurance rating agency to boost the sector’s credibility and enhance its competitiveness within the continent.

4.0 Conclusion

The Board, Management, and Staff of the Commission are of a firm conviction that the strategic direction will significantly inure to the benefit of policyholders, industry players, and contribute to Ghana’s economic growth