The Insurance and Risk Finance Facility (IRFF) of the United Nations Development Programme (UNDP) has pledged continuously to ensure that workers in the informal sector especially embrace insurance as a way of life.

The Coordinator of the IRFF, Dr Amina Sammo, explained the importance of inclusive insurance as distinct from traditional life, health, or property insurance, among others.

She made this remark during a micro and small business clinic (MSBC) organized by the National Insurance Commission (NIC) and the Insurance Awareness Coordinators’ Group (IACG).

“Business insurance protects goods and assets against unforeseen events, allowing traders to avoid substantial financial losses in times of crisis,” Dr Sammo noted.

With business insurance, she added, individuals are less likely to depend on government support following events such as destructive fires and or floods, as they can rely on their insurance claims to mitigate the effects of their losses.

According to Dr Sammo, the programme's goal is to ensure that informal businesses have access to reliable insurance solutions within the next one to five years, fostering resilience and financial security across Ghana’s informal sector.

On his part and in his welcome remarks, the Acting Commissioner of Insurance, Mr Michael Kofi Andoh, has admonished insurers to develop tailor-made insurance products to drive insurance inclusivity. He advised that insurers who are in the position to manage risks must create customized insurance products aimed at enhancing access to specific products for the informal sector which comprises about 80% of the working people in Ghana.

These remarks were made during the climax of a six-week-long Inclusive Insurance Awareness Clinic Programme in Accra; an event focused on empowering informal workers on risk identification and resilience through inclusive insurance.

The clinics were supported by the IRFF of the UNDP and brought together leaders from various informal sector associations, including commercial drivers, market women, artisans, and small business owners.

Mr Andoh emphasized that the NIC has been working closely with insurers to design innovative insurance products that meet the unique needs of the informal workforce, which represents a significant portion of the national labour force yet often lacks access to insurance in times of disaster.

“People in the informal sector frequently face unforeseen disasters, yet traditional insurance services have not adequately addressed their needs.

Inclusive insurance provides income protection, ensuring individuals can recover swiftly from losses,” Mr Andoh said.

He highlighted that these new insurance solutions could provide relief, offering alternatives to support from government bodies such as the National Disaster Management Organization (NADMO).

The training session also equipped the association leaders with the knowledge needed to advise their members on how to interact with insurers and understand the policy terms and conditions of insurance products.

“Our goal is for leaders to understand the details of inclusive insurance so they can confidently ask questions when sales agents approach them,” Mr Andoh added.

The awareness campaign aims to prepare informal sector leaders to disseminate information on initiating claims and the benefits of business insurance, particularly for market women and artisans.