The CEO of the Ghana Shippers’ Authority, Prof Ransford Gyampo, has justified government’s decision to enforce mandatory local insurance for all imports.

He described it as a critical step to retain financial resources within Ghana and strengthen the domestic insurance industry.

Speaking at a sensitisation seminar in Accra on Wednesday, he said the directive by Cassiel Ato Forson requires the Ghana Revenue Authority and the Bank of Ghana to enforce the policy under Section 222 of the Insurance Act, 2021.

“This decisive policy intervention is intended to protect shippers, retain insurance premiums within the national economy and foster the growth of a resilient and sustainable domestic insurance market, and thus give true meaning to developing local content for Ghana’s economic transformation,” he said.

Prof. Gyampo stressed that the move comes amid growing risks in global trade, particularly in maritime transport.

“Approximately 80–90% of global trade by volume is transported by sea, with a significant proportion of this cargo carried in containers.

"In recent years, industry data indicates that an average of about 1,500 to 2,000 containers are lost at sea annually, although this figure can fluctuate significantly in years involving major maritime incidents,” he noted.

“When broader risks such as piracy, terrorism, conflict, and industrial actions are considered, it becomes evident that substantial risks exist—not only in maritime transport but across all modes of cargo movement,” he added.

He said the current system heavily disadvantages Ghana, with most insurance premiums flowing out of the country.

“Research has revealed that although the majority of import shipments into Ghana are transacted on Cost-Insurance-Freight (CIF) basis, only about 6% of imports are insured locally,” he said.

“Furthermore, approximately 75% of importers have little or no knowledge of the insurance cover on their cargo and a limited awareness among shippers regarding their rights and obligations,” he added.

He warned that reliance on foreign insurers continues to drain critical resources.

“Concerns have therefore been raised on the significant capital flight from Ghana through continued reliance on foreign insurers for cargo insurance over the years.

"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.

Prof. Gyampo also outlined the disadvantages importers face when insurance is arranged abroad.

“Limited control over premium rates; lack of transparency in policy terms; delays and higher costs associated with claims processing; and cumbersome and often complex dispute resolution processes,” he listed.

“By contrast, local underwriting offers improved regulatory oversight, easier access to insurers, faster claims settlement, greater transparency, and direct contribution to national economic development,” he said.

He urged stakeholders to support the policy, describing it as a shared responsibility.

“I therefore urge all importers, shipping service providers, and insurers gathered here to embrace this directive as a shared responsibility.

"Together, we can build a robust cargo insurance industry that enhances transparency, accelerates claims settlement, and contributes meaningfully to Ghana’s economic growth,” he concluded.