Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP) for the 2028 elections, has expressed support for a series of policy proposals aimed at strengthening Ghana's insurance industry. This followed an engagement with the leadership of the Insurance Brokers Association of Ghana (IBAG). The discussions focused on practical measures to expand the insurance industry and address some of the challenges confronting operators.
The proposals presented during the engagement included measures to reduce the tax burden on insurance, particularly through VAT exemption for micro-insurance products. There were also calls to streamline regulation in the sector. IBAG President, Stephen Kwarteng Yeboah, raised concerns about what the association considers over-regulation and proposed the creation of a single regulatory body for the industry.
Other issues discussed during the engagement included stronger enforcement of the compulsory use of local insurance brokers and measures to deepen participation in the sector. Dr. Bawumia described the proposals as having the potential to support the growth of the insurance brokerage industry. He emphasized the need for continued engagement with IBAG on these proposals as part of broader policy discussions on the future of Ghana's insurance industry.
Currently, Ghana applies a 15% VAT to taxable non-life insurance premiums, according to the Ghana Revenue Authority. The insurance industry in Ghana has been facing several challenges, including low penetration rates and high operational costs. The proposed reforms aim to address these challenges and create a more conducive environment for the growth of the industry.
Dr. Bawumia's support for the proposals is seen as a significant boost to the insurance sector, which has been calling for reforms to enhance its operations. The Vice President's engagement with IBAG is part of his broader consultations with various stakeholders on policy issues affecting different sectors of the economy.
The insurance sector in Ghana has been growing steadily, with several players operating in the market. However, the industry still faces significant challenges, including low penetration rates and high claims ratios. The proposed reforms aim to address these challenges and create a more sustainable and competitive insurance market.
Key issues discussed during the engagement include the need for VAT exemption for micro-insurance products, streamlining regulation, and stronger enforcement of the compulsory use of local insurance brokers. Dr. Bawumia has assured IBAG that he and his team will continue to engage with them on these proposals to ensure the growth and development of the insurance industry.
Key points
- Dr. Mahamudu Bawumia supports policy proposals to strengthen Ghana's insurance industry.
- The proposals include measures to reduce the tax burden on insurance and streamline regulation.
- The reforms aim to address challenges facing the industry, including low penetration rates and high operational costs.
