Ghana intends to improve insurance penetration in the maritime sector, thus the government is ensuring that all cargo coming and leaving the country is insured with a local insurance company.
This initiative led to the signing of a Memorandum of Understanding (MoU) between the National Insurance Commission (NIC), Ghana Shippers Authority (GSA) and the Ghana Revenue Authority (GRA) towards improving Ghana’s maritime sector.
The agreement dubbed the ‘Marine Cargo Insurance Protocol’ will complement the implementation of the Insurance Act to offer a major boost on insurance penetration and revenue mobilisation efforts.
Insurance penetration which is defined as premium income to GDP has remained relatively stable at about 1 percent. The low level of insurance penetration suggests that the insurance industry has significant room to grow.
Dr. Justice Yaw Ofori, Commissioner of Insurance, National Insurance Commission commenting on the initiative upon signing the Memorandum of Understanding opined that the implementation of the protocol will help reduce foreign exchange repatriation to overseas insurance companies.
“This will thereby reduce the pressure of the Ghanaian cedi. The Marine Cargo Insurance Protocol will introduce transparency in customs revenue thereby assisting the Ghana Revenue Authority with projections based on market data,” he alerted.
The Commissioner of Insurance further asserted that his outfit has commenced work on the Marine and Aviation database which will electronically safeguard data on all marine and aviation insurance policies issued in Ghana.
“This is expected to enable the Customs Division of the GRA to verify the authenticity of all marine insurance documents submitted to them by importers in compliance with the Insurance Act hence the protocol,” he added.
The Chief Executive of the Ghana Shippers Authority, Benonita Bismark sharing her thoughts also intimated that a successful implementation of the protocol will occupy an important place in overseas trade and commerce.
Ms. Bismarck went on to say that the protocol will further enable all stakeholders who trade overseas and domestically to venture their capital freely which in turn expands the scope of their operations.
“The successful implementation of the protocol is hugely dependent on the capacity of the insurance companies in Ghana, both human and financial and there have been assurances from the NIC on their preparedness to institute a transparent and well-regulated system,” Ms. Bismarck remarked.
Rev. Ammishaddai Owusu-Amoah, Commissioner General of the Ghana Revenue Authority taking his turn to speak asserted that the signing of the MoU had come at an opportune time as his outfit is embarking on aggressive revenue mobilisation.
“We warmly welcome this initiative [Marine Cargo Insurance Protocol] that will further empower the Customs Division with compliance and ensure that cargo leaving and coming into the country is insured with local insurance companies.”
In conclusion, with a promising economic outlook, advancement in insurance products offered, such as improving the marine cargo insurance sector, this will go a long way to improve Ghana’s maritime sector and domestic cargo system. Also, it is expected that risks accompanying premium income growth in the insurance industry will be maintained at minimal levels to enhance the performance of the sector.
