NIC targets small businesses as insurance penetration dips

NIC targets small businesses as insurance penetration dips
Source: Ghana | Bismark Awusah | JoyBusiness
Date: 08-10-2019 Time: 07:10:28:pm

The National Insurance Commission (NIC) has organized a workshop for small and medium-sized businesses on the need for insurance as part of plans to boost insurance penetration.

The Medium and Small Business Operators Clinic brought together members of the Greater Accra Markets Association and other stakeholders.

The NIC is promoting micro-insurance on a large scale as another way to increase the number of people with insurance cover in the country. 

According to the Commissioner of Insurance, Justice Yaw Ofori, this has become necessary to protect small businesses against unforeseen emergencies which usually result in loss of lives and properties.

“Those people who experienced the fires, if they had such insurances, they wouldn’t be calling on the government so we think it’s a step in the right direction that no matter how small you are you need some protection because the risk is not selective,” he told JoyBusiness.

Mr Ofori is also hopeful the initiative will go a long way to improve insurance penetration in the country.

Penetration rate

According to the 2018 NIC Report and Financial Statement, Insurance penetration rate dropped to 1 per cent from the previous rate of 1.12 per cent – a situation blamed on the rebasing of the economy.

The sensitization programme follows the NIC’s quest to get a New Insurance Law passed before the end of the year. The new law will introduce a strategic paper setting out the feasibility, modalities and the legal framework for micro-insurance and agricultural insurance.

Micro-insurance seeks to offer simplified insurance cover for micro and small scale entrepreneurs and their assets.

According to the NIC, the premiums involved have been made very affordable to entice the small business operators.

President of the Greater Accra Market Association, Mercy Naa Afrowa Needjan, lauded the initiative by the insurance commission. She believes it will secure their businesses and future.