Dr. Mahamudu Bawumia, the 2028 presidential candidate of the New Patriotic Party (NPP) and former Vice President, has unveiled a series of policy proposals aimed at expanding Ghana's insurance industry. These proposals emerged from a meeting with the Insurance Brokers Association of Ghana (IBAG) on September 29, as part of his ongoing consultations with professional groups and stakeholders. IBAG represents licensed insurance brokers in Ghana.
The discussions centered on practical measures to address challenges facing the insurance brokerage sector and enhance its contribution to Ghana's economy. IBAG President, Stephen Kwarteng Yeboah, highlighted concerns about the high Value Added Tax (VAT) burden on insurance products. He proposed exempting micro-insurance from VAT to make insurance products more accessible to low-income individuals and small businesses.
Dr. Bawumia's proposals also included reducing regulatory burdens by establishing a single regulatory body to oversee the insurance industry. This move aims to streamline regulatory processes and reduce the complexity of compliance for insurance brokers. Furthermore, Dr. Bawumia discussed developing agricultural insurance with government support to protect farmers from crop failures and livestock diseases.
The meeting also covered the compulsory use of local insurance brokers, mandatory Group Life and Workmen’s Compensation insurance, and the introduction of decennial liability insurance for road construction projects. These proposals are designed to increase the uptake of insurance products and deepen the insurance market in Ghana.
Dr. Bawumia emphasized that the proposals have the potential to transform the insurance brokerage industry and make a positive impact on Ghana's economy. He noted that these ideas would form part of further policy discussions with IBAG as he continues his engagements with stakeholders ahead of the 2028 elections.
The Insurance Brokers Association of Ghana (IBAG) plays a crucial role in promoting the interests of insurance brokers and contributing to the development of the insurance industry in Ghana. The association's president, Stephen Kwarteng Yeboah, has been actively involved in discussions with policymakers to shape the future of the industry.
Dr. Bawumia's team will continue to engage with IBAG and other stakeholders to refine the policy proposals and ensure that they align with the needs of the industry and the broader economy. The goal is to create a more robust and inclusive insurance sector that benefits both the industry players and the Ghanaian people.
Key points
- Dr. Bawumia proposes exempting micro-insurance from VAT to increase accessibility.
- A single regulatory body is suggested to reduce regulatory burdens on insurance brokers.
- Agricultural insurance with government support is being considered to protect farmers.
