Local insurers supplied to underwrite marine and aviation shipment dangers – Boampong – Life Pulse Daily

Introduction

The Ghanaian insurance industry is poised for a major transformation as local insurers prepare to fully underwrite marine and aviation shipment risks. This shift comes as the government enforces mandatory domestic marine cargo insurance for all commercial imports starting February 1, 2026. The move aims to retain significant insurance premiums within the local economy, strengthen the financial sector, and provide robust protection for importers. Industry leaders, including Mercy Naa Koshie Boampong of Serene Insurance, have affirmed that Ghanaian insurers possess the technical expertise, financial strength, and international partnerships necessary to manage these complex risks effectively.

Key Points

Background

Marine cargo insurance has been a part of Ghana’s insurance landscape for decades, but enforcement of mandatory local coverage has been inconsistent since the legal requirement was introduced in 2006. Data from the National Insurance Commission (NIC) reveal that only a small fraction of imports are currently insured domestically, resulting in substantial premium leakage to international insurers. In 2024, Ghana’s ports handled approximately 13.7 million metric tonnes of cargo, with imports valued at about US$15.2 billion, highlighting the vast potential for local underwriting.

Analysis

Industry Readiness and Capacity

Mercy Naa Koshie Boampong, CEO of Serene Insurance and Second Vice-President of the Ghana Insurers Association (GIA), has firmly rejected claims that local insurers lack the capacity to underwrite large-scale marine risks. She emphasized that the industry has well-established structures, experienced underwriting teams, and access to global reinsurance markets. This international support allows local insurers to share high-value risks and ensure claims are settled without financial strain.

Economic and Financial Implications

The enforcement of mandatory local marine cargo insurance is expected to have significant economic benefits. By retaining premiums within Ghana, the policy will boost the local insurance sector’s capital base, deepen underwriting expertise, and strengthen the national financial ecosystem. Industry analysts predict that consistent enforcement could generate nearly GH₵300 million annually, supporting business creation and innovation.

Global Reinsurance Support

Every risk underwritten locally is supported by reinsurance arrangements that distribute exposure across international partners. This global risk-sharing framework not only guarantees additional security for importers but also ensures that local insurers can manage complex and high-value risks effectively. The collaboration with multinational reinsurers underscores the industry’s readiness to meet the new regulatory requirements.

Practical Advice

For Importers

Importers should begin preparing for the upcoming enforcement by reviewing their current insurance arrangements and ensuring compliance with the new local coverage requirements. Engaging with reputable local insurers early will help avoid disruptions and ensure seamless coverage for shipments.

For Insurers

Local insurers should continue to strengthen their underwriting capabilities, invest in technology, and deepen partnerships with global reinsurers. Proactive communication with clients and clear guidance on compliance will be essential as the enforcement date approaches.

For Regulators

Regulators should maintain close collaboration with industry stakeholders to ensure smooth implementation. Regular monitoring and transparent reporting on compliance rates will help build trust and support the policy’s long-term success.

FAQ

Conclusion

The enforcement of mandatory local marine cargo insurance marks a pivotal moment for Ghana’s insurance industry and economy. With strong industry readiness, robust reinsurance support, and clear regulatory backing, local insurers are well-positioned to manage the risks associated with marine and aviation shipments. This policy not only promises to retain significant premium income within the country but also deepens the expertise and resilience of the domestic financial sector. As the February 2026 deadline approaches, all stakeholders—importers, insurers, and regulators—must work together to ensure a smooth transition and maximize the benefits of this transformative initiative.