Africa-Press – Ghana. The National Insurance Commission (NIC) has announced a new strategic direction aimed at extending insurance coverage to the informal sector, which constitutes the majority of Ghana’s workforce.
The initiative, in line with the government’s economic reset agenda, seeks to provide financial security and hope to a demographic that has traditionally been underserved by the insurance industry.
This was disclosed by Dr. Abiba Zakariah, Commissioner, NIC, during the 3iC Inclusive Insurance Innovation Challenge which was held in Accra.
After an intense pitch competition featuring 10 insurance companies, Agricom Assurance, emerged as first, while Wellmax took the second position and Resolut Business Solutions Limited took the third position.
The competition focused on innovative insurance products designed specifically for the agriculture sector.
The informal sector is the largest employer in Ghana as recent reports indicate that it accounts for approximately 80 per cent of the country’s total workforce.
However, insurance penetration in Ghana hovers at approximately 1 per cent of GDP.
This figure is well below the African average of 3 per cent and the global average of 6 per cent.
To address this challenge, the Commissioner stated that the commission is committed to developing products and services that are tailored to the unique cultural and financial realities of informal workers.
She said that previous products did not adequately consider the needs of this sector.
The Commissioner noted that to address the issue of accessibility, the NIC was leveraging technology to overcome traditional distribution channel challenges, such as the high cost of setting up physical offices in every region.
She noted that technology would enable quicker and more efficient delivery of product lines to a wider audience, including the informal sector.
In a move to support the agricultural sector, she said the NIC would also introduce an agri-insurance concept with a premium subsidy.
This move according to her is in recognition of the financial challenges farmers often face in paying insurance premiums.
She said the subsidy was designed to ease this burden and encourage wider participation.
She revealed that the NIC was also working to restore trust in the insurance industry, an issue it acknowledged as a significant disincentive for many Ghanaians.
The Commissioner stated that a comprehensive strategy was in place to change the industry’s approach and build consumer confidence.
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