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UNDP, NIC and IACG roll out insurance clinics to promote coverage, boost financial access

BA5C1278 The clinics will engage market traders and artisans in the Greater Accra Metropolitan Area

Sun, 29 Sep 2024 Source: www.ghanaweb.com

The United Nations Development Program (UNDP) Insurance and Risk Finance Facility (IRFF), in collaboration with the National Insurance Commission (NIC) and the Insurance Awareness Coordinators’ Group, have launched extensive micro-insurance/inclusive insurance clinics that will engage market traders and artisans in the Greater Accra Metropolitan Area (GAMA).

The clinics will consist of interactive sessions with informal sector workers to discuss the risks they face in their business and personal lives. These sessions will be held in strategic locations such as Ada, Sege, Kasoa, Galilea, Prampram, etc.

In his keynote address and during the launch of these inclusive clinics, the Commissioner of Insurance (Acting), Michael Kofi Andoh, emphasised the need for the insurance sector to grow exponentially with a focus on the informal sector.

He pointed out that over 70% of the national workforce operates within the informal sector and is largely underserved by traditional insurance products.

Andoh stressed the importance of developing insurance products that cater to the needs of this underserved population.

He also highlighted the crucial role insurance plays in making farmers and other informal workers creditworthy, urging market traders, artisans, and other vulnerable groups to embrace insurance as a risk-mitigating mechanism.

He clarified that inclusive insurance, also known as micro-insurance, is different from basic insurance.

Micro-insurance offers tailored products designed specifically for low-income earners, providing them with coverage in case of unforeseen events.

“This type of insurance is targeted at groups like market women, artisans, and food vendors,” he noted.

In contrast, basic insurance typically includes policies such as vehicle, life, and property insurance, which are more widely known and used by the general public.

The launch, which had a two-fold purpose, also included the launch of the Inclusive Insurance Certification Programme by the UNDP IRFF in collaboration with the Ghana Insurance College with the support of the NIC.

These initiatives aim to build the necessary capacities and promote awareness of inclusive insurance across the country. The clinics are scheduled to take place between September and November 2024 for the first cohort.

Dr. Kingsley Kwabason, CEO of the Ghana Insurers Association (GIA), who spoke on behalf of the IACG, lamented the slow progress in implementing inclusive insurance in Ghana, despite being the first country in Africa to develop a framework for it.

He expressed confidence in seeing a change soon and optimism about the NIC's partnership with UNDP's IRFF to make inclusive insurance more accessible to all Ghanaians.

Ms. Linet Odera, the Regional Technical Advisor for UNDP's IRFF, praised the NIC's vision of launching the inclusive insurance program, predicting that it would increase the supply of insurance in the country while the awareness clinics address the demand side.

Dr. Abdul Razak Saeed, Head of Environment and Climate Cluster at UNDP - Ghana, emphasized the crucial role inclusive insurance could play in mitigating the impacts of climate change and climate-related issues.

He urged the NIC to increase awareness and build capacity to develop programs tailored to low-income households and small business owners, ensuring they understand the benefits of opting for one form of inclusive insurance or another.

UNDP's IRFF Coordinator, Dr. Amina Sammo, expressed satisfaction with the progress of the initiative.

She highlighted the importance of extending insurance coverage to those who have traditionally been excluded, such as market traders and artisans.

MA

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Source: www.ghanaweb.com
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