Marine insurance performing poorly in Ghana – Experts say

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The marine industry has been identified as one of the abysmally performing sector in terms of penetration into the insurance sector. This, experts say is the result of dwindling knowledge about marine business and its correlation with marine insurance.

This was disclosed at an ongoing marine training and marine insurance workshop for players in the industry at Big-Ada in the Greater Accra Region. 

The National Insurance Commission with support from GIZ organized the week-long workshop with consultants and experts to deliberate on the importance of marine insurance to the marine industry. 

President for the Ghana Insurers Association, Aretha Duku, speaking to Atinka News, said motor insurance comes to mind at the mention of the kinds of insurance with scanty or no knowledge on marine insurance. She said elsewhere, there is a correlation between marine business and marine itself in terms of imports, but unfortunately, the situation is the reverse here in Ghana. 

Aretha Duku, buttressing her point with figures, said in 2007, total imports into Ghana was 8 billion dollars with an expected premium of 16.2 million dollars. Unfortunately, only 9.95 dollars was realized. The figures imply a decline in marine insurance as import increases which should have been the other way round. 
The GIA president noted that it is for such reasons that the programme was organized to whip up knowledge of marine insurance in the marine industry.

The Commissioner of Insurance, Justice Ofori on his part, attributed the development partly to the GRA one percent penalty slapped on players in the marine industry. He was optimistic of timely approval of the new Insurance Bill which is being worked to ensuring that all goods imported purchase insurance cover. Mr. Ofori appealed to Insurers to work out easy to understand and moderate packages for small-scale industry, especially local fishermen to make it simple and easier for access.

The head of Financial System Development of GIZ, Jocken Ramcke observed that though regulations and laws are good, over-regulation has been the bane to boosting the insurance sector in other jurisdictions. 

The workshop is being patronized by insurance experts and players in the industry envisaged changing the negative trend afterward.

Ghana | | Edward Sebbie