Audio By Carbonatix
Policy think tank IMANI Africa has raised legal and procurement concerns over changes to insurance arrangements at the Ghana National Gas Company, warning that disrupting an existing structured insurance programme could have far-reaching consequences for international reinsurance markets.
The concerns are outlined in the second instalment of IMANI’s Insurance Question series, which identifies the Ghana Gas case as being “at the centre of this dispute”.
According to submissions made by GLICO General Insurance Ltd to the Presidency, the company had secured a structured insurance programme for Ghana Gas involving participation from A-rated international reinsurers, including the London market.
GLICO stated that it had arranged a two-year locked-in reinsurance structure with pricing advantages negotiated at the international level. However, its role as lead insurer was terminated effective 31 December 2025, with a different insurer assuming responsibility from 1 January 2026.
IMANI’s analysis raises three key questions about the transition: whether the change followed a competitive procurement process, whether existing contractual obligations were properly reviewed and lawfully terminated, and whether the implications for international reinsurance commitments were assessed before the change was made.
“Once reinsurance capacity is allocated, it is not easily reversed,” the analysis states. “It is priced, committed, and supported by balance sheets outside Ghana.”
IMANI warned that unilateral disruption of such arrangements could carry systemic consequences, potentially affecting Ghana’s credibility in international insurance markets, future risk pricing, the availability of reinsurance capacity, and the long-term cost of insuring strategic national assets.
“This is not theoretical risk,” the analysis states. “It is how global insurance systems operate.”
The think tank also highlighted a separate regulatory concern. GLICO’s petition raises questions about third-party involvement in reinsurance negotiations, particularly where entities with regulatory or quasi-regulatory influence may also hold competing commercial interests within the same market.
IMANI noted that if such engagements occurred without the authority of the insurer of record, they could conflict with provisions of the Insurance Act, 2021 (Act 1061), particularly regarding authorised placement structures, regulatory oversight and market conduct standards.
“At that point, the issue is no longer commercial. It becomes regulatory,” the analysis states. “And when regulatory boundaries begin to blur, confidence begins to weaken.”
IMANI described Ghana Gas as a strategic national asset with complex operational risks, including gas processing infrastructure, pipeline networks, industrial facilities and third-party liabilities. It noted that such risks typically require detailed risk engineering, structured underwriting and multi-year placement commitments rather than administrative reassignment.
Latest Stories
-
Afro-Arab Properties pledges support for Mahama’s affordable housing agenda
47 minutes -
Edmond Kombat named Energy Sector Reform Programme Champion of the Year 2026
60 minutes -
PAC summons Takoradi doctor over GH¢341,229 study leave salary
2 hours -
37 Military Hospital traders given 7-days to clear pedestrian walkway
2 hours -
Wontumi challenges EOCO’s handling of Exim Bank loan dispute
2 hours -
Government keeps appealing to striking teachers to resume work – Apaak
2 hours -
Chief Justice urges employers to tackle mental health stigma in workplaces
2 hours -
52,000 teachers’ promotion payments targeted for October 15
2 hours -
Nzema chiefs honour Lands Minister, demand sustainable revival of Adamus Resources
2 hours -
ExxonMobil return talks emerge as GIPA CEO holds back details
2 hours -
Council of State meets teacher unions over strike today
2 hours -
Ntim Fordjour appeals to Mahama to abandon regulation restricting preaching in buses
2 hours -
Volta youth farmers commend Agric Minister, appeal for markets for cassava growers
2 hours -
Mahama commissions expanded production line at Nestlé Ghana Ltd
3 hours -
Chief of Staff urges journalists to uphold accuracy, fairness
3 hours