Ghana’s insurance industry has reaffirmed its readiness to fully underwrite marine and aviation cargo risks as government moves to strictly enforce compulsory domestic marine cargo insurance for all commercial imports effective February 1, 2026.

The assurance comes from Mercy Naa Koshie Boampong, Chief Executive Officer of Serene Insurance and Second Vice-President and Chairperson of the Ghana Insurers Association (GIA).

Mrs Boampong firmly rejected suggestions that local insurers lack the technical expertise or financial strength to handle large-scale marine cargo risks. She described marine cargo insurance as a well-established and mature line of business within Ghana’s insurance market, not a new product being introduced solely because of enforcement.

“Marine cargo insurance has existed in Ghana for decades. The industry has the structures, underwriting capacity and systems required to manage complex and high-value risks,” she stated.

Strong Capital Base and Global Reinsurance Support

According to Mrs Boampong, Ghanaian insurers operate with solid capital bases and experienced underwriting teams, supported by structured access to international reinsurance markets.

She emphasised that every marine risk underwritten locally is backed by reinsurance arrangements that distribute exposure across global partners. Through reinsurance and retrocession mechanisms, local insurers are able to share high-value risks internationally, ensuring that claims can be settled without financial strain.

“Every risk underwritten locally is supported by reinsurance. This global risk-sharing framework guarantees additional security for importers and the economy,” she said.

Enforcement to Retain Premiums in Ghana

The renewed enforcement is being implemented under Section 222 of the Insurance Act, 2021 (Act 1061), in collaboration with the Ministry of Finance, Bank of Ghana, National Insurance Commission (NIC) and Ghana Revenue Authority (GRA).

Although the legal requirement for domestic marine cargo insurance has existed since 2006, compliance has been limited. Data from the NIC indicate that only about six percent of Ghana’s imports are currently insured locally. Industry estimates suggest that nearly US$100 million in marine insurance premiums is paid annually to foreign insurers.

Mrs Boampong noted that Ghana’s insurance sector currently has significant unused underwriting capacity due to continued offshore placement of cargo insurance.

“With effective enforcement, this existing capacity can now be fully utilised to protect Ghanaian importers while retaining premium income within the local economy,” she said.

Significant Economic Impact

The potential economic impact is substantial. In 2024, Ghana processed approximately 13.7 million metric tonnes of cargo through its ports, with total merchandise imports valued at about US$15.2 billion. These imports including petroleum products, grains, edible oils, frozen foods and heavy machinery—require comprehensive marine cargo coverage.

Daniel F. Yeboah, Head of Insurance and Pensions at the Ministry of Finance, has indicated that full implementation of the policy could generate nearly GH₵300 million annually for the domestic insurance industry.

Industry analysts believe consistent enforcement could strengthen capital accumulation within the insurance sector, deepen underwriting expertise and enhance linkages between insurance and trade finance.

Industry Ready for Full Implementation

Mrs Boampong maintained that Ghana’s insurers are fully prepared to assume the responsibility.

“The Ghanaian insurance industry is ready. Serene Insurance is ready. The financial backing, technical competence and international partnerships are already in place,” she affirmed.

With enforcement set to take effect, stakeholders view the policy as a critical step toward safeguarding Ghana’s import trade, strengthening domestic financial institutions and retaining significant insurance premiums within the national economy.