Ghana Insurers Ready to Underwrite Marine Cargo –Serene Insurance CEO

Mercy Naa Koshie Boampong, Chief Executive Officer of Serene Insurance Company Limited, and 2nd Vice-President of the Ghana Insurers Association (GIA), has expressed strong confidence in the ability of Ghanaian insurers to underwrite marine cargo risks, insisting that local firms possess the financial and technical capacity to support the country’s import trade.

Her remarks follow government’s renewed enforcement of compulsory domestic marine cargo insurance for all commercial imports, a policy aimed at ensuring that risks associated with Ghana-bound cargo are insured locally rather than offshore.

According to Mrs. Boampong, local insurers are well-prepared to handle the anticipated increase in business as compliance improves.

Using Serene Insurance Company Limited as an example, she noted that Ghanaian insurers have long operated in the marine insurance space and have developed the expertise and systems required to manage complex and high-value cargo risks.

“Marine cargo insurance is not a new product being introduced because of enforcement,” she said, adding “it is a mature class of business in Ghana.

At Serene Insurance, we have the structures, systems and expertise to handle complex risks, just as the industry has done for decades.”

Mrs. Boampong rejected suggestions that local insurers lack the capacity to absorb Ghana’s marine cargo risks, explaining that underwriting strength is anchored on capitalisation, technical competence and robust reinsurance arrangements.

She stressed that risks underwritten by domestic insurers are typically supported by international reinsurance and retrocession agreements, ensuring that claims can be honoured even in the event of major losses.

“Every risk underwritten locally is backed by reinsurance. This means the industry is not exposed to unsustainable losses, and clients can be assured of claims-paying ability.”

She further indicated that Ghana’s insurance industry currently has significant unused capacity, partly due to the long-standing practice of many importers insuring cargo with foreign insurers.

Despite a local insurance requirement introduced nearly two decades ago, offshore placements have continued to dominate the market.

“With renewed enforcement, that capacity can now be utilised to protect Ghanaian importers while retaining premium income within the domestic economy,” she added.

Government’s enforcement of compulsory local marine cargo insurance is being undertaken under Section 222 of the Insurance Act, 2021 (Act 1061), effective February 1, 2026. The directive is being implemented by the Ministry of Finance, working alongside the Bank of Ghana, the National Insurance Commission (NIC), and the Ghana Revenue Authority (GRA).

Data from the National Insurance Commission (NIC) show that only a small fraction of Ghana’s imports are currently insured locally, despite the legal requirement. Industry estimates suggest that tens of millions of dollars in premiums leave the country annually through offshore insurance placements.

Stakeholders argue that stricter compliance could deliver substantial economic benefits by deepening the insurance sector, boosting local investment, and strengthening financial market stability.

Ghana’s import volumes underscore the scale of the opportunity. Merchandise imports continue to form a significant part of trade activity, covering commodities such as petroleum products, food items, and industrial machinery.

Daniel F. Yeboah, Head of Insurance and Pensions at the Ministry of Finance, recently noted that full implementation of the policy could generate significant revenue for the domestic economy.

Speaking at a stakeholder engagement organised by the Ghana Chamber of Shipping, he acknowledged that enforcement had historically been weak but emphasised government’s commitment to ensuring compliance.

Mrs. Boampong maintained that the industry stands ready to support the policy, describing the renewed enforcement as a critical step toward strengthening Ghana’s insurance market.

“The Ghanaian insurance industry is ready. The structures, expertise, and financial backing are already in place,” he said.

 

 

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