The United Nations Development Program (UNDP) Insurance and Risk Finance Facility (IRFF) in collaboration with the National Insurance Commission (NIC) and the Insurance Awareness Coordinators’ Group have launched some extensive micro insurance / inclusive insurance clinics which will engage market traders and artisans in the Greater Accra Metropolitan Area (GAMA).

The clinics will take the form of interactive sessions with these informal sector workers on the risks they face in their business and personal lives. These will take place in strategic locations such as Ada, Sege, Kasoa, Galilea, Prampram etc.

In his keynote address, and ultimately launching these inclusive clinics, the acting Commissioner of Insurance, Mr Michael Kofi Andoh, emphasized the need for the insurance sector to grow exponentially with a focus on the informal sector. He noted that over 70% of the national workforce operates within the informal sector and is mostly underserved with the traditional insurance products.

“This type of insurance is targeted at groups like market women, artisans, and food vendors. This will serve the need of the underserved segment of the population”, he noted.

Mr Andoh highlighted the critical role insurance plays in making farmers and other informal workers creditworthy and called on market traders, artisans and other vulnerable groups to embrace insurance as a risk mitigating mechanism.

He, however, clarified that inclusive insurance, also known as micro-insurance, is not really the same as basic insurance.

According to the the Commissioner, micro-insurance provides tailored products designed specifically for low- income earners, giving them access to coverage in case of unforeseen events.

He explained that “in contrast, basic insurance typically includes policies such as vehicle, life, and property insurances, which are more commonly known and used by the general public.”

The launch which was a two-edged one also had the launch of the Inclusive Insurance Certification Programme by the UNDP IRFF in collaboration with the Ghana Insurance College with the support of the NIC.

These initiatives aim to build the required capacities and promote awareness of inclusive insurance across the country. The clinics are expected to take place within the months of September and November 2024 for the first cohort.

Dr. Kingsley Kwabason, CEO of the Ghana Insurers Association (GIA) who spoke on behalf of the IACG bemoaned the fact that though it is an established fact that Ghana was the first country in Africa to develop a framework for inclusive insurance, not much progress in its implementation has been realised but expressed confidence in a change soon.

He expressed optimism about the NIC's partnership with the UNDPsIRFF), aimed at making inclusive insurance more accessible to all Ghanaians.

“I am confident this partnership will provide insurance solutions to the informal economy. It will also promote financial inclusion.”

Ms Linet Odera, the Regional Technical Advisor for UNDP's IRFF, commended the NIC's vision of rolling out the inclusive insurance programme, predicting it would increase the supply of insurance in the country whilst the awareness clinics take care of the demand side.

Also, Dr. Abdul Razak Saeed, Head of Environment and Climate Cluster at UNDP - Ghana, added that inclusive insurance could play a crucial role in mitigating the impacts of climate change and climate-related issues.

He urged the NIC to scale up awareness and build adequate capacity to develop programmes tailored to low-income households and small business owners, ensuring they fully understand the benefits of taking up one form of inclusive insurance or the other.

UNDP'sIRFF Coordinator, Dr. Amina Sammo, expressed her satisfaction with the progress of the initiative highlighting the importance of extending insurance coverage to those who have traditionally been excluded, such as market traders and artisans.