NIC aims to raise insurance coverage to 60% in the next five years
Michael Andoh, Acting Commissioner of the National Insurance Commission (NIC) of Ghana, has unveiled ambitious plans of the Commission to boost insurance coverage in the country from the current 44% to approximately 60% within the next five years.
Making that assertion during a press conference at the 19th International Conference on Inclusive Insurance (ICII) on Tuesday, October 23, 2023, noted that the current 44% nationwide insurance coverage is a significant improvement from the 29% insurance coverage recorded in 2019.
“In the next five years, we expect to take insurance coverage in the country to about 60%. And this is the percentage of the population that is covered by insurance. We sometimes get obsessed with insurance penetration, and I understand that is how much money insurance is making. But this is how many people insurance is protecting and I think lives are so important,” he remarked.
Mr. Andoh speaking further at the press briefing, underscored the NIC’s commitment to expanding inclusive insurance by targeting micro and small enterprises, which constitute a significant portion of Ghana’s population and employment landscape.
These enterprises including carpenters, masons, beauticians, and dressmakers, face various risks daily. While they currently lack insurance coverage, the NIC is actively working to build the capacity of insurance companies to design products tailored to their specific needs.
Additionally, an educational campaign is underway to inform these entrepreneurs about the insurance products available to address their challenges. The NIC is further organizing micro and small business clinics to facilitate this outreach and foster economic resilience.
Addressing the impact of the Domestic Debt Exchange Programme on insurance companies’ operations, he acknowledged that a few companies experienced impairment, but these impairment losses have been successfully mitigated through regulatory forbearance measures implemented by the NIC.
The mission of the International Conference on Inclusive Insurance (ICII) is to provide a non-profit platform for all stakeholders to present and discuss issues, policies and state-of-the-art solutions for efficient, sustainable and inclusive insurance products by;
- promoting the development and proliferation of good-value insurance for emerging economies;
- raising awareness of the demand for insurance in the low-income segment and its potential;
- providing opportunities for insurance and development experts to progressively develop shared visions and create new partnerships.
