The president of the Insurance Brokers Association of Ghana (IBAG), Stephen Kwarteng Yeboah, has raised concerns over what he describes as growing political interference in Ghana’s insurance sector.

He warns that it is largely driven by the pursuit of kickbacks.

Speaking on Joy News’ PM Express on Tuesday, he questioned why state institutions would bypass brokers and deal directly with selected insurance companies.

“When the premium is paid, we get paid our commission out. So there’s a lot of work that you do. Sometimes we need to even travel outside the country when we don’t have the capacity to negotiate terms with reinsurance outside the country,” he said.

He argued that brokers' role is critical in securing the best terms for clients, especially in complex reinsurance transactions.

Against this backdrop, he found it difficult to justify the termination of brokerage contracts by state institutions.

“So why will a state institution probably cancel the contract of a broker, and decide to go direct and deal with some selected insurance companies?” he asked.

He suggested that such decisions may not be purely administrative.

“If there’s no motivation probably to have a kickback, which we know is happening, then I see no reason why you want to cancel the contract of a broker,” he stated.

Mr Yeboah did not mince words about what he believes is the underlying problem.

“The problem is the kickback, so when we see infiltration of politicians in the sector, there’s only one thing: how do we get kickback?” he said.

He added that, aside from this motive, the actions of some actors in the sector are difficult to explain.

“Other than that, sometimes you don’t see what the interest is. Why is the push?” he questioned.

Referencing ongoing public discussions, he pointed to comments by Franklin Cudjoe of Imani Africa regarding the SIC matter, noting that there may be attempts to justify certain decisions under the guise of promoting state institutions.

“For example, I think Franklin Cudjoe of Imani Africa was talking about something regarding the SIC matter, which is really my main focus.

"So maybe there’s an intention. SIGA is a state institution, and they want to promote that. But that’s wrong, because we are all players in this country,” he said.

He stressed that the insurance ecosystem is interconnected and collectively sustained by its stakeholders.

“The National Insurance Commission is one of the state institutions that is fully funded by us, the players. All of us contribute to the subscription to the National Insurance Commission,” he noted.

Mr Yeboah further underscored the industry's collaborative nature.

“And the insurance industry is one of the few industries where you find a closer relationship between the regulator and players, brokers and the individual,” he added.