Dr. Mahamudu Bawumia has engaged the leadership of the Insurance Brokers Association of Ghana (IBAG) as part of efforts to explore practical policy measures to strengthen and expand Ghana’s insurance industry.
The meeting focused on key challenges facing the insurance sector in Ghana and possible reforms that could improve insurance penetration, support businesses and create a more sustainable insurance market.
The President of IBAG, Stephen Kwarteng Yeboah, presented a number of proposals aimed at addressing some of the major concerns affecting insurance brokers and policyholders.
IBAG Calls for VAT Relief on Micro-Insurance
One of the major issues raised during the discussions was the tax burden on insurance products.
IBAG called for a review of the Value Added Tax (VAT) on insurance services, particularly the exemption of micro-insurance products from VAT.
The association believes that reducing the tax burden on micro-insurance could make insurance more affordable and accessible to low-income households and small businesses.
Call for Insurance Regulatory Reforms
The association also raised concerns about what it described as over-regulation within Ghana’s insurance industry.
IBAG proposed the establishment of a single regulatory body to streamline regulatory processes and create a more efficient operating environment for insurance companies and brokers.
According to the association, regulatory reforms could improve efficiency and support the growth of the insurance brokerage industry.
Agricultural Insurance Development
Another major proposal centred on the development of agricultural insurance in Ghana.
IBAG called for stronger government support for agricultural insurance schemes to help farmers manage risks associated with crop failure, extreme weather conditions and other challenges affecting agricultural production.
A stronger agricultural insurance system could provide farmers with greater financial protection and contribute to the development of Ghana’s agriculture sector.
IBAG Pushes Local Broker Requirement
The association further called for the enforcement of the compulsory use of local insurance brokers.
The proposal is aimed at strengthening the participation of Ghanaian insurance brokers in the domestic insurance market and ensuring that local professionals benefit from insurance-related business opportunities.
IBAG also proposed the introduction of compulsory Group Life Insurance and Workmen’s Compensation Insurance to strengthen financial protection for employees and their families.
Decennial Liability Insurance for Road Projects
Another significant proposal was the introduction of decennial liability insurance for road construction projects.
The policy would provide long-term protection against certain construction-related risks and could strengthen accountability and risk management in Ghana’s road infrastructure sector.
The proposal comes amid growing discussions about improving the quality, durability and accountability of road construction projects in the country.
Bawumia and IBAG to Continue Policy Engagement
The proposals presented by IBAG are expected to contribute to ongoing discussions on policies that could transform Ghana’s insurance brokerage industry and improve the wider insurance market.
Dr. Bawumia and his team are expected to continue engaging the Insurance Brokers Association of Ghana on the proposed reforms and other measures aimed at promoting the growth and development of the sector.
The engagements are focused on identifying practical policy solutions that can strengthen Ghana’s insurance industry, improve access to insurance products and support broader economic development.
A more competitive and accessible insurance sector could also provide greater financial protection for individuals, businesses, farmers and workers across the country.
Source: newsthemegh.com