Insurance and maritime industry experts have expressed confidence in the capacity of Ghanaian insurance companies to underwrite marine cargo risks, stating that the local market is well prepared to meet the country’s needs as government enforces mandatory local coverage requirements.
The Ghana Chamber of Shipping (GCS), together with insurance professionals, said at a stakeholder engagement organized by the Chamber in Accra that the enforcement of the Insurance Act, 2021 (Act 1061), is supported by a competent and technically sound domestic insurance industry.
The remarks were made at a stakeholder roundtable held on Tuesday, February 11, 2026, to discuss marine cargo insurance and regulatory compliance following government’s directive requiring all commercial cargo imports into Ghana to be insured by insurance companies licensed in the country starting February 1, 2026.
Mr. Larry Jiagge, a Chartered Insurer and lawyer, dismissed concerns about the competence and experience of local insurers, explaining that marine insurance operates under internationally recognized standards.
He stated that marine insurance is universal in nature and that all practitioners apply the same principles, particularly the Institute Cargo Clauses, which guide cargo cover globally. Mr. Jiagge noted that Ghanaian insurers have provided marine cargo cover for many years and that industry training aligns with global best practices, including standards used in established maritime jurisdictions such as the United Kingdom.
According to him, this ensures that importers and businesses in Ghana can access professional and reliable marine insurance services locally, comparable to what is offered abroad.
Dr. Emmanuel Kofi Mbiah, Chief Executive Officer of the Ghana Chamber of Shipping and a Maritime Law Consultant, highlighted the practical advantages of securing marine insurance within the country. He explained that foreign based insurance arrangements often create difficulties for importers when cargo is damaged, as claims processes can be slow and complicated.
Dr. Mbiah stated that with local insurance, when goods arrive damaged, the importer can immediately engage the insurer in Ghana to process and settle the claim. He added that the domestic insurance industry operates within a structured framework that includes co-insurance and reinsurance arrangements to manage large or complex risks.
Under the Insurance Act, he said, local insurers are permitted to pool their resources to underwrite significant cargo shipments. Where risks exceed their individual or combined capacity, they can transfer part of the exposure to international reinsurance markets. He explained that when companies undertake co-insurance, they share the risk among themselves, and if the exposure goes beyond what they can carry, they reinsure with firms on the broader international market.
The experts maintained that with these mechanisms in place, Ghana’s insurance industry has both the technical knowledge and financial backing to effectively support marine cargo operations and protect importers against losses.
Mercy Naa Koshie Boampong, Second Vice President of the Ghana Insurance Association and Chief Executive Officer of Serene Insurance Company Limited, said local insurers currently have excess or unused capacity because importers have not been procuring coverage locally despite the legal requirement existing in previous legislation since 2006.
She stated that marine cargo insurance is not a new product that is being developed and emphasized that the industry possesses decades of experience and robust international reinsurance arrangements to handle the estimated 100 million United States dollars in annual premiums currently flowing to foreign insurers.
Data from the National Insurance Commission reveals that only six percent of imports have been insured locally despite the underlying legal provision existing for nearly two decades under Section 222 of the Insurance Act, 2021 (Act 1061), which mandates that imported cargo into Ghana be insured locally.
However, implementation has been slower than anticipated since the February 1, 2026 enforcement date. Stephen Yeboah, Director of Policy and Strategic Relations at the Ministry of Finance, acknowledged at the stakeholder engagement that some importers still think they do not have adequate information on the various processes in terms of the value chain and how it will be done.
He added that Ghana Revenue Authority officers are providing education at ports as shipments arrive to address information gaps and facilitate compliance. Mr. Yeboah projected that within a month or two, with all of these engagements, the information will go down very well and compliance will accelerate, though stakeholders have expressed skepticism about the timeline given current information gaps and process uncertainties.
The Ghana Chamber of Shipping has identified several industry concerns requiring resolution, including whether local insurers can maintain competitive pricing, ensure efficient claims settlement, and handle the volume of business previously conducted with international carriers. The Chamber has called for a three month grace period to allow businesses to adjust to the mandatory local cargo insurance directive.
Industry stakeholders have disputed the adequacy of pre-implementation consultation, with prominent voices calling for a halt to enforcement pending exhaustive stakeholder engagement. The Ministry of Finance acknowledged the concerns, with Mr. Yeboah stating that the roundtable represented an opportunity for extensive feedback or information.
Samson Asaki Awingobit, Executive Secretary of the Importers and Exporters Association of Ghana (IEAG), and Joseph Paddy, Public Relations Officer of the Ghana Union of Traders Associations (GUTA), both representing industry, called for further engagements while expressing concern over swift and seamless claims whenever due.
The government projects the policy will improve foreign exchange reserves by retaining premium payments domestically, boost revenue generation through corporate taxes on local insurers, and support economic stability by reducing pressure on the cedi.
The National Insurance Commission will oversee regulatory enforcement and industry supervision, while Ghana Revenue Authority manages Customs clearance enforcement and the Bank of Ghana ensures banking system compliance. The Ghana Revenue Authority has designated focal officers for operational coordination to address implementation challenges as they arise, and the Ministry of Finance expects periodic updates on progress, including operational challenges requiring policy intervention.
