The Chief Executive Officer of the Ghana Shippers’ Authority, Professor Ransford Gyampo, has raised concerns over the limited understanding of cargo insurance among importers, cautioning that the situation leaves many businesses vulnerable to avoidable losses.

Addressing participants at a sensitisation seminar on mandatory local insurance for imports on April 8, Prof. Gyampo revealed that nearly 75 per cent of importers lack adequate knowledge of cargo insurance, including their rights and responsibilities within the shipping process.

He further disclosed that although most imports into Ghana operate under the Cost-Insurance-Freight (CIF) model, only about 6 per cent of these shipments are insured through local providers, raising questions about the level of protection available to traders.

According to him, the reliance on foreign insurance firms has also led to significant capital outflows, depriving the domestic insurance sector of much-needed revenue and growth opportunities.

“It is also obvious that insurance premiums paid abroad deprive the local insurance industry of revenue that could otherwise stimulate economic growth, create jobs, and enhance technical capacity within Ghana’s financial services sector,” he stated.

Cargo insurance serves as a safeguard for goods in transit, protecting them against risks such as theft, damage, or loss.

However, Prof. Gyampo stressed that when such insurance is secured from foreign entities, Ghana loses out on the economic benefits unless local firms are engaged.