The domestic insurance industry has defended its capacity to underwrite marine cargo business for all commercial imports following government’s February 1, 2026 enforcement of a mandatory local coverage requirement, even as implementation proceeds at what officials describe as “snail’s pace”.

The Ghana Insurance Association insists local insurers possess excess capacity to handle the estimated US$100million in annual premiums currently flowing to foreign insurers, citing decades of experience and robust international reinsurance arrangements.

However, data from the National Insurance Commission reveals that only six percent of imports have been insured locally despite the underlying legal provision existing for nearly two decades.

“Marine cargo insurance is not a new product that is being developed,” Mercy Naa Koshie Boampong, Second Vice President of the Ghana Insurance Association and CEO of Serene Insurance Company Limited, told B&FT on the sidelines of a stakeholder engagement organised by the Ghana Chamber of Shipping on the subject.

“The insurance industry in Ghana has been underwriting marine cargo insurance for several years. Companies which are over 50 years, 60 years, 40 years, have been writing marine insurance. And we have capacity,” she added.

The enforcement, directed by the Ministry of Finance through coordination with the Bank of Ghana, National Insurance Commission and Ghana Revenue Authority, targets Section 222 of the Insurance Act, 2021 (Act 1061) which requires all commercial imports to be insured domestically.

Rationale

Ghana discharged approximately 13.7 million metric tonnes of goods at its ports in 2024 according to UN Trade and Development, with total imports valued at US$15.2billion for merchandise alone.

Major import categories include refined petroleum products, grains & cereals, edible oils, frozen meat & fish and heavy machinery.

Daniel F. Yeboah, Head of Insurance and Pensions-Financial Sector Division, Ministry of Finance, said the policy aims to generate close to GH¢300million annually when fully implemented alongside broader macroeconomic benefits.

“Over the years, various leadership has come and it has been realised that this is the time for it to be fully rolled out so we can all get the benefits which come from it,” Mr. Yeboah told stakeholders at the event.

Government projects the policy will improve foreign exchange reserves by retaining premium payments domestically, boost revenue generation through corporate taxes on local insurers and support economic stability by reducing pressure on the cedi.

Despite official enforcement beginning February 1, 2026, implementation has been slower than anticipated.

“Some of the importers still think they do not have adequate information on the various processes in terms of the value chain, how it will be done,” Yeboah acknowledged, adding that Ghana Revenue Authority officers are providing education at ports as shipments arrive.

The Ghana Chamber of Shipping has identified several industry concerns requiring resolution, including whether local insurers can maintain competitive pricing, ensure efficient claims settlement and handle the volume of business previously conducted with international carriers.

Stanley Ahorlu, President of the Ghana Chamber of Shipping, highlighted a critical commercial complication: foreign suppliers frequently extend credit to Ghanaian importers, with such arrangements often requiring procurement of insurance offshore as part of the credit package.

“This is a substantive concern,” Ahorlu said, noting that the mandatory local insurance requirement could disrupt established trade finance relationships.

The Chamber estimates annual value retention of US$100million in Ghana compared to over US$600million in Nigeria, which operates a similar mandatory local insurance regime. Ninety percent of Ghana’s international trade moves by sea.

Capacity and competition questions

The insurance industry maintains that capacity concerns are unfounded, pointing to multiple layers of reinsurance and retrocession contracts which distribute risk internationally.

“When it comes to capacity, we are looking at capital. In terms of capital, in terms of knowledge and skills or capabilities, we have an abundance,” Mrs. Boampong said.

She acknowledged that local insurers currently have “excess or unused capacity” because importers have not been procuring coverage locally, despite the legal requirement existing in previous legislation since 2006.

However, Ahorlu noted that the policy’s success depends less on absolute capacity than on service quality and regulatory effectiveness.

“What matters is the quality of service and whether or not the regulator is up and doing and ensuring that the market doesn’t go into cartel mode,” he said.

The National Insurance Commission will oversee regulatory enforcement and industry supervision, while Ghana Revenue Authority manages Customs clearance enforcement and the Bank of Ghana ensures banking system compliance.

Stakeholder engagement

Industry stakeholders have disputed the adequacy of pre-implementation consultation, with prominent voices calling for a halt to enforcement pending exhaustive stakeholder engagement. The Ministry of Finance acknowledged the concerns, with Mr. Yeboah stating that the roundtable represented an opportunity for “extensive feedback or information”.

Samson Asaki Awingobit, Executive Secretary-Importers and Exporters Association of Ghana (IEAG) and Joseph Paddy, Public Relations Officer of GUTA – both representing industry, called for further engagements while expressing concern over swift and seamless claims whenever due.

The Ghana Revenue Authority has designated focal officers for operational coordination to address implementation challenges as they arise; and the Ministry of Finance expects periodic updates on progress, including operational challenges requiring policy intervention.

Yeboah projected that: “Within a month or two, with all of these engagements, the information will go down very well and compliance will accelerate, though stakeholders have expressed scepticism about the timeline given current information gaps and process uncertainties”.

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