NIC and Partners Commit to Inclusive Insurance

NIC and Partners Commit to Inclusive Insurance

The National Insurance Commission (NIC) says it is working with its partners to improve access to insurance products and services to promote financial inclusion and to 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, Mr 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.

Mr. Andoh noted that “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, 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 had made preparations towards the planned 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 supported the organization of the workshop because, “insurance in general is very important for any country, particularly for Ghana and it is more important taking into account the issue of disasters.”

He noted that 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 which will rope in the informal sector, ensuring the desired financial inclusivity.