Audio By Carbonatix
Renowned business leader and Chancellor of the University of Cape Coast, Sir Sam Jonah, has issued a sobering assessment of Ghana’s insurance sector, warning that the industry is yet to fully heal from the scars of the Domestic Debt Exchange Programme (DDEP).
Delivering the keynote address at the annual conference of the Insurance Brokers Association of Ghana (IBAG) on Thursday, 26th March 2026, Sir Sam urged industry players to move past "euphemisms" and confront the structural vulnerabilities exposed by the government’s debt restructuring exercise.
Sir Sam was blunt in his evaluation of the fiscal shocks that hit the financial sector over the past three years. He noted that while macroeconomic indicators might suggest a rebound, the underlying capital base of many insurance firms remains fragile.
“The DDEP was a blow to the capital base of many firms — insurers and intermediaries alike,” Sir Sam stated. “Recovery has been underway, and the numbers are encouraging, but we must not mistake recovery for full restoration.”
He argued that for the industry to move forward, it must first be "frank" about the extent of the damage.
“I will not soften these. They require honest naming, because problems that are named can be solved. Problems that are spoken around, in whispers and euphemisms, only grow,” he cautioned the gathered executives and brokers.
A key takeaway from the tycoon's address was the over-reliance of Ghanaian insurance firms on government securities.
Before the DDEP, many insurers held the bulk of their investment portfolios in Treasury bills and government bonds, assuming them to be risk-free. The debt exchange proved otherwise, leading to significant haircuts and liquidity challenges.
Sir Sam noted that the crisis exposed a "structural vulnerability" that must be addressed immediately to prevent future collapses.
Sir Sam Jonah recommended shifting investment strategies away from a heavy concentration in government securities to more varied asset classes.
He also urged boards to prioritise the building of stronger capital buffers to withstand future economic shocks.
Additionally, he insisted that risk management and diversification must be "standing agenda items for every board in this industry".
The conference, held in the capital, comes at a time when the National Insurance Commission (NIC) is pushing for higher minimum capital requirements and stricter compliance.
Sir Sam’s remarks serve as a mandate for the Insurance Brokers Association to lead the charge in professionalising the intermediary space and ensuring that firms are not just surviving but are structurally sound.
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