NIC and partners commit to improve insurance coverage through inclusive insurance
The National Insurance Commission (NIC) has indicated it is working with its partners to improve access to insurance products and services.
This it believes will promote financial inclusion and make life better for many more Ghanaians.
Since 2010, the NIC has been working to develop an inclusive insurance regime in Ghana, with technical and financial assistance from the German Development Cooperation (GIZ) and support from the United Nations Development Programme (UNDP).
Several initiatives have been taken to propel the development of the inclusive insurance market. Addressing stakeholders in the insurance industry at a validation workshop in Accra, Acting Commissioner of Insurance, Michael Kofi Andoh said the NIC and its partners were seeking to identify gaps and opportunities in the work done so far by the team.
“The focus of insurance has been on white and blue colour employees and people who receive salaries and operate bank accounts but the majority of our people are petty traders, farmers, masons, and carpenters they operate in the informal sector. And so if we leave the insurance the way it is, in the conventional space then most of our people will not have access to insurance.”
“It is not that they don’t need insurance but they don’t have access to it due to the way it is structured and that’s where the inclusive insurance conversation comes in.”
Over the past years, the Commission has made a lot of efforts towards the increase in access, some of which were building the capacity of insurers, and regulatory changes.
Mr Andoh recalled that the NIC had given the requisite training to insurance companies and ensured the creation of products that meet the needs of the market.
Deputy Resident Representative at UNDP, Sukhrob Khoshmukhamedov, intimated that the UNDP insurance was critical for farmers in the wake of the impact of climate change so when farmers are insured against drought or flood they will be able to sustain their businesses and livelihoods.
“Inclusive insurance will play a vital role as a catalyst for social and economic development while promoting financial inclusion and safeguarding the well-being of vulnerable populations,” he added.
The partners are confident of coming up with an inclusive insurance regulatory strategy and roadmap that will rope in the informal sector, ensuring the desired financial inclusivity.