Create insurance products for the poor for inclusivity – Ofori Atta

Ken Ofori-Atta, Minister for Finance, has called for continuous efforts from players in the insurance sector to work and create a Ghana with robust insurance inclusivity.

He said the sector’s products should target the needs of the poor to increase coverage and growth.

They should also create value and protection for the vulnerable.

The Finance Minister said this in a keynote address at the International Conference on Inclusive Insurance 2023, which brought together industry players from the continent, government officials and some other stakeholders.

He said though the country’s insurance sector had played critical roles in the socio-economic development of the citizens, one per cent penetration (contribution to GDP) was a testament to urgent actions.

Ofori-Atta said the insurance penetration in Africa had been 2.78 percent and that the low coverage in Africa stemmed from low public confidence in the insurance industry, inadequate research, uncompetitive pricing, inadequate distribution channels, low-income levels and cultural factors.”

The Minister said the focus on insurance must be on the informal sector of the economy, adding that “we need to ensure that insurance is integral to all that we do, and we must find a way to get around the issue of poverty to protect our people.”

He said: “The insurance sub-sector has recorded growth from GH¢4.65 billion in 2017 to GH¢12.24 billion at the end of December 2022, with the pensions and securities sector constituting 14.9 per cent and 4.6 percent respectively over the same period.”

Michael Kofi Andoh, Acting Insurance Commissioner, said about 44 percent of the Ghanaian population had insurance coverage as of 2021, having come from about 29 per cent in 2016.

“In the next five years, the industry is expected to take coverage to about 60 per cent. And to achieve this target we are focusing on inclusive insurance where we are looking at micro and small businesses – the carpenters, dressmakers, beauticians and all artisans,” he said.

The International Conference on Inclusive Insurance 2023 seeks to create innovative ideas for insurance inclusivity and bridge the protection gap through the exchange of knowledge and experience.

The four-day event has speakers from 35 counties to share knowledge in 22 sessions.