Former Vice President Dr Mahamudu Bawumia has held discussions with the leadership of the Insurance Brokers Association of Ghana (IBAG) on policy measures aimed at strengthening and expanding Ghana’s insurance industry.
The meeting focused on practical interventions that could address some of the challenges confronting the sector and improve its contribution to the Ghanaian economy.
According to Dr Bawumia, IBAG President Stephen Kwarteng Yeboah highlighted a number of concerns during the engagement, including what the association considers to be a high Value Added Tax (VAT) burden on insurance services.
The association also proposed that micro-insurance products be exempted from VAT to make them more accessible and encourage wider insurance coverage.
Other issues raised included concerns about over-regulation within the industry and a proposal for the establishment of a single regulatory body to streamline oversight.
The discussions also touched on agricultural insurance, with IBAG calling for greater government support to develop the sector and provide stronger protection for farmers against risks.
The association further advocated the enforcement of compulsory use of local insurance brokers, as well as mandatory Group Life and Workmen’s Compensation insurance.
Another proposal was the introduction of decennial liability insurance for road construction projects, which IBAG believes could provide long-term protection against defects and liabilities associated with infrastructure projects.
Dr Bawumia described the proposals presented by the insurance brokers as having the potential to contribute to the transformation of Ghana’s insurance brokerage industry.
He said his team would continue engaging IBAG and other stakeholders on policy issues as part of efforts to develop practical measures for the growth of the sector.
