The Importers and Exporters Association of Ghana (IEAG) has hosted a high-level delegation from Ghana’s insurance sector at its Tema office, following a working visit initiated by the insurance industry in response to IEAG’s earlier press statement on the proposed mandatory local cargo insurance policy as directed by the Minister of Finance.
The engagement was led by the Executive Secretary of IEAG, Mr. Samson Asaki Awingobit, and the insurance delegation was headed by the Chief Executive Officer of the Ghana Insurers Association (GIA), Dr. Kingsley Kwesi Kwabahson, with representatives from the National Insurance Commission (NIC) and the Insurance Brokers Association of Ghana (IBAG) in attendance.
Mr. Awingobit reiterated that IEAG is not opposed to the policy in principle, but raised concerns over specific provisions of the Legislative Instrument (LI) which may negatively impact the import sector. He questioned the proposal for custodial sanctions against importers who fail to insure cargo locally, and further noted that a significant volume of imports are conducted on Cost, Insurance and Freight (CIF) terms, where cargoes are already insured by overseas suppliers. He cautioned against double insurance, stressing that while premiums may be duplicated, claims cannot be doubly recovered in the event of loss.
He also drew attention to the silence of the LI on transit cargoes, seeking clarity on whether goods merely transiting through Ghana are expected to be insured locally, and how such provisions would be implemented without disrupting regional and international trade flows.
Additionally, Mr. Awingobit raised concerns about the claims-paying capacity, financial strength, and responsiveness of local insurers, particularly in respect of high-risk and high-value cargoes, emphasizing the need for strong capitalization and prompt claims settlement in the event of loss.
In response, Dr. Kingsley Kwesi Kwabahson, speaking on behalf of the insurance stakeholders, assured IEAG that the mandatory local cargo insurance Legislative Instrument remains under review and fine-tuning, and that all issues and concerns raised by the Association, including those relating to transit cargoes, will be carefully reviewed and addressed through ongoing stakeholder consultations.
RELATED DEVELOPMENT
In a related engagement, Mr. Awingobit also received the management of Star Assurance Company Limited, who paid a courtesy call on him to reaffirm their commitment to working with IEAG to secure improved and competitive cargo insurance solutions for members of the Association.
Leading the Star Assurance delegation, Mrs. Nana Serena Abrahams, Head of Underwriting and Global Business, stated that Star Assurance has the financial capacity, technical expertise, and risk appetite to promptly settle claims, regardless of the level of cargo risk.
Mr. Awingobit welcomed the engagement and reaffirmed IEAG’s readiness to partner strategically with credible insurers in the interest of its members and the broader trading community.