The National Insurance Commission (NIC), in partnership with the United Nations Development Programme’s (UNDP) Insurance and Risk Finance Facility (IRFF), has launched a groundbreaking nationwide initiative to extend business insurance to some of Ghana’s most underserved communities—artisans and market women.
This collaboration aims to provide these groups with access to much-needed insurance products that can protect their livelihoods in times of unforeseen emergencies, ensuring a safety net for the informal sector, which plays a vital role in the country’s economy.
For too long, market traders and artisans have been excluded from the formal insurance sector, leaving them vulnerable to disasters such as fires, floods, and other incidents that could wipe out their businesses.
Recognizing this gap, the UNDP and NIC are working together to change the narrative by promoting inclusive insurance that caters specifically to micro-business owners, particularly those who have been traditionally overlooked.
Dr. Amina Sammo, Coordinator of the UNDP’s IRFF, emphasized the significance of this initiative during the NIC’s Inclusive Insurance Awareness Clinic for the Greater Accra Metropolitan Area.
In her remarks, she expressed satisfaction with the progress made and highlighted the critical need to extend insurance coverage to informal sector workers, such as market traders and artisans.
“Insurance has often eluded small business owners, like the charcoal, waakye, or plantain sellers on the street. While basic insurance, such as car, property, and life insurance, is common, what about coverage for the market woman’s stock or the artisan’s tools in case of an emergency? We need to shift the focus towards micro-business insurance, which can bring real relief to those who lose their livelihoods due to unforeseen circumstances.”
Dr. Amina Sammo
For many of these small-scale entrepreneurs, the ability to recover quickly from a crisis can mean the difference between survival and complete financial ruin. Insurance products tailored to their specific needs will provide a much-needed buffer against disasters, giving them the confidence to rebuild their businesses in the event of a loss.
The Campaign and Targeted Outreach
The nationwide campaign is set to begin fieldwork in October 2024, with a team of 26 trained enumerators visiting key markets in Dodowa, Katamanso, Kasoa, Ada, Sege, and Asutuare from October 1 to October 5, 2024.
The enumerators will meet with the leadership of market women, artisans, and their associations to raise awareness about the benefits of business insurance.
The fieldwork aims to engage these underserved communities directly, with the enumerators communicating in indigenous languages to ensure that the message resonates with the target audience.
Artisans and traders will learn how insurance can help safeguard their businesses against disasters like floods or fires, which often devastate their operations and leave them struggling to recover.
The training of the enumerators is a critical component of the initiative, equipping them with the knowledge and skills to effectively communicate the importance of business insurance to the masses.
Kyeame Ghanasah, the lead facilitator for the training session, guided the participants through the key objectives of the fieldwork, stressing the need for clear and concise communication during their interactions with market leaders and artisans.
A call for Innovation
Dr. Sammo also urged the insurance industry to rise to the challenge and innovate, particularly in the area of developing accessible insurance products that cater to the needs of vulnerable populations.
Dr. Sammo highlighted that the initiative’s goal is not only to provide immediate relief to business owners facing disasters but also to create long-term, sustainable solutions that can protect their livelihoods.
“We need to move beyond the heavily marketed funeral policies, which overlook the immediate needs of traders facing disasters like floods and market fires. Business insurance should be a priority, and we need to come up with products that truly serve the needs of this population.”
Dr. Amina Sammo
Mr. Nda Ahale Polley, representing the Ghana Insurers Association (GIA) and the Insurance Awareness Coordinating Group (IACG), reiterated the importance of collaboration and coordination in driving the success of the campaign.
Mr. Nda Ahale Polley noted that the IACG was formed to streamline all insurance awareness campaigns in the country, avoiding overlapping efforts and ensuring that the message of inclusive insurance reaches as many people as possible.
Building a Sustainable Future for Ghana’s Informal Sector
The informal sector plays an essential role in Ghana’s economy, contributing significantly to employment and income generation. Yet, the sector remains largely uninsured, leaving workers vulnerable to financial shocks that could wipe out their livelihoods.
By targeting market women and artisans, the UNDP and NIC initiative aims to change this reality and bring business insurance to the forefront of the conversation.
The five-phase program, which began with reconnaissance visits to selected markets, is a comprehensive effort designed to reach as many people as possible. Following the fieldwork and data collection phases, capacity-building initiatives will ensure that selected teams are equipped to relay insurance information to the wider community even after the program ends.
As the campaign rolls out, the hope is that more market women and artisans will begin to recognize the value of business insurance and take steps to protect their enterprises.
The UNDP and NIC are committed to supporting the insurance industry in its efforts to serve over 90% of the population that remains excluded from general insurance products. Through this initiative, they aim to create a more inclusive insurance landscape that benefits all Ghanaians, especially those in the informal sector.
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