Shippers urged to embrace domestic marine insurance

The Executive Director of the West Africa School of Shipping, Gertrude Adwoa Ohene-Asiene, has urged the shipping community to patronise local marine insurance over foreign ones.

With industry data suggesting that over 80 percent of importers seek foreign insurance to protect their cargo, she noted that the figures do not bode well for the economy.

“You can sit down with them [local insurers], face-to-face and have an in-depth discussion about where your risk begins and ends. They can give you the right policy to cover your risks.

“Again, when there is a claim, the insurer is right here. You can take your policy and follow the claim process to get your funds. Additionally, there is also a regulator here to sanction an insurance company when it does the wrong thing. So, the benefits of patronising local insurance are many,” she stated.

She noted that many people are unaware that the insurance they hold may not adequately cover the risks they face.

On the other hand, she indicated that one of the key advantages of local insurance providers is their proximity and accessibility.

On foreign marine insurance, she said: “The biggest problem we see is that most policies people have simply don’t cover their risks. There’s no point in paying for insurance that does not adequately protect you when you need it most”.

The Executive Director of the West Africa School of Shipping, who was speaking on the sidelines of the ‘8th Media Seminar on Shipping and Logistics’ organized by the Ghana Shippers Authority (GSA), reckoned that with continuous education, shippers will get to appreciate the call.

“The best way to place for insurance is usually through a broker. Usually, the brokers are experienced and therefore they can tell you about the dos and don’ts…It is important that you get somebody who can explain the right insurance product to go for,” she added.

In another development, the Head of Export at the Ghana National Chamber of Commerce and Industry (GNCCI), Charles Arthur, who also spoke at the event, emphasised that African countries should study one another to understand the products in demand in different regions of the continent.

He said working to match those needs is a key factor that can enable smooth operation and allow the continent to reap the benefits of the African Continental Free Trade Agreement (AfCFTA).

Mr. Arthur explained that leveraging a country’s capacity and resources to meet demands elsewhere would produce significant outcomes under the AfCFTA, as such individual African countries must look out for a product that would increase cooperation and promote trade rather than create competition.

“One thing is that we have to try not to make it like a competition. For instance, Kenya and Ghana, both have to check which product is needed, like which products Ghana needs from Kenya and which products Kenya needs from Ghana. If we do it that way, it will not be like a competition. If Ghana sends tea to Kenya, it will not work because they have that but if they send say cocoa, it might work.

“We have to look for a product that will not bring competition but make us collaborate more and promote,” he said.

He also underscored the significance of the certificate of origin in the implementation of the AfCFTA, stressing that shippers must obtain it to clear their consignments.

He added that 55 companies so far have registered and that was subject to renewal after two years with about 98 certificates issued three years after the implementation of AfCFTA.

This year’s seminar was held under the theme ‘contemporary trends and developments in Ghana’s shipping and logistics industry’.

The seminar aimed to highlight the rapid evolution of the shipping and logistics sector. This sector is one of the key drivers of socio-economic development due to its wide scope, reach and impact on various stakeholders, with a particular focus on the numerous indirect beneficiaries of its output.

Addressing participants at the event, the Chief Executive Officer of GSA, Benonita Bismarck, said the Authority recognises the media as an indispensable stakeholder in its mission to effectively protect and promote the interest of shippers.

She was hopeful that through such meetings, journalists would be equipped and empowered to take the story of the numerous positive developments in the sector.

“You would particularly highlight the facilitating role the GSA has and continues to play to ensure that the sector remains a viable propeller of socio-economic well-being for shippers (importers and exporters), the government as well as the citizenry of the country,” she said.