US$100m marine insurance windfall hinges on claims credibility

The domestic insurance industry risks losing the full benefits of a new marine cargo insurance regime unless insurers rebuild confidence through faster, fairer and more transparent claims settlement, industry players have warned.

The warning comes as enforcement of a law requiring all commercial imports to be insured domestically is expected to channel an estimated US$100million in annual premiums back into the local market; a shift regulators and underwriters say could strengthen Ghanaʼs trade resilience and position the country as a more competitive hub for intra-African commerce under the Africa Continental Free Trade Area (AfCFTA).

However, stakeholders at the maiden Marine Cargo Insurance Forum stressed that the premium opportunity will only translate into sustainable growth if businesses and traders trust insurers to deliver when losses occur.

The forum, convened by B&FT under the theme ‘Securing Trade: The Role of Marine Cargo Insurance in Risk Management and Trade Facilitation’, served as a platform for regulators, insurers and trade actors to examine opportunities and challenges surrounding implementation of the mandatory insurance regime.

The policy, which took effect on February 1 under Section 222 of the Insurance Act, 2021 (Act 1061), requires commercial imports into Ghana to be insured locally.

Acting Commissioner of Insurance Dr. Abiba Zakariah, in a speech read on her behalf by Stella Jonah – Head of Market Strategy and Innovation at the National Insurance Commission (NIC), said the future of Ghanaʼs trade resilience depends on trust, collaboration and technology enabled regulation.

“In a trade-dependent economy like Ghana – where export earnings alone reached US$6.2billion in just the first two months of this year – marine cargo insurance is not merely a financial product; it is an economic stabiliser and a trade enabler,” she stated.

She urged industry players to be trustworthy, deliver on their promises and strengthen collaboration across the trade ecosystem.

“As we look ahead, the choices we make today about regulation, innovation and partnerships will determine whether Ghana becomes a secure and trusted trading hub for the continent,” she said.

Dr. Zakariah emphasised that an economy dependent on international trade requires robust financial safeguards, particularly at a time when global supply chains face increasing exposure to climate disruptions, geopolitical tensions and digital fraud.

She noted that a localised underwriting regime will protect traders from debilitating capital shocks, minimise cash-flow vulnerabilities and improve access to trade finance.

Trust remains industry’s biggest test

While the mandatory regime presents a major commercial opportunity for insurers, stakeholders cautioned that long-term success will depend on operational improvements rather than regulatory enforcement alone.

The industryʼs ability to retain confidence among importers and exporters, they argued, will determine whether the expected premium inflows translate into deeper insurance penetration.

Managing Director-Activa Insurance Salifu Abubakari said strengthening Ghanaʼs trade competitiveness requires risk protection systems which inspire confidence, adding that marine cargo insurance provides one of the critical mechanisms for achieving this objective.

“The risk in terms of marine accident or loss is too huge to ignore and so business owners should never compromise on insurance,” he said.

Mr. Abubakari said Activaʼs presence across several African markets positions the company to contribute in Ghanaʼs ambition of developing a stronger regional insurance ecosystem.

AfCFTA opportunity

As host of the AfCFTA Secretariat, Ghana occupies a strategic position in efforts to build a more integrated African market.

With AfCFTA projected by the World Bank to boost continental exports by US$560billion and connect 1.3 billion consumers, cross-border trade volumes are expected to increase significantly.

However, stakeholders noted that rising trade flows will also introduce more complex risks including transit exposures, cross-border disputes and jurisdictional challenges.

The NIC said a resilient domestic insurance ecosystem will provide Ghanaian businesses with confidence to expand across regional markets while supporting the countryʼs ambition of becoming a trusted logistics and financial hub in West Africa.

Digital systems to support enforcement

Industry players also highlighted the importance of technology in implementing the mandatory regime across thousands of commercial shipments.

To strengthen monitoring and reduce fraud, NIC has introduced its Marine and Aviation Insurance Database which will enable real-time electronic verification of marine insurance policies.

The digital platform will operate alongside the Marine Cargo Insurance Protocol, an institutional collaboration involving the Ghana Revenue Authority (GRA), Ghana Shippersʼ Authority, Bank of Ghana (BoG) and maritime logistics operators.

Stakeholders said the system’s success will depend on seamless data-sharing, reduced administrative delays and efficient coordination among agencies to avoid creating bottlenecks at Ghanaʼs ports.

Collaboration critical to policy success

Chief Executive Officer (CEO) of B&FT Dr. Godwin Acquaye said the nationʼs mandatory marine cargo insurance policy’s success will depend not only on regulation but also sustainedengagement among all stakeholders within the trade ecosystem.   

“The succesful implementation of Ghana’s mandatory marine cargo insurance policy will depend not only on regulation, but also on sustained dialogue, collaboration and shared commitment across the entire trade ecosystem,” he said.

“At the Business & Financial Times, we see it as our responsibility to convene these important conversations, create a platform for diverse industry perspectives and contribute to practical solutions that strengthen Ghana’s insurance market while enhancing the country’s competitiveness as a trading nation,” he added.

The forum was sponsored by Activa International Insurance, SIC Insurance and GLICO.

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