Chief Executive Officer of Serene Insurance and Second Vice President and Chairman of the Ghana Insurers Association, Mercy Naa Koshie Boampong, has strongly defended the capacity of local insurance companies to deliver robust, growth-oriented risk cover for marine and aviation cargo to safeguard Ghana’s import trade over the long term.
Citing Serene Insurance as a clear example of local capability, Mrs Boampong stated that the company is financially sound and technically equipped to support Ghana’s import trade through comprehensive marine cargo insurance solutions.
Her assurance to importers, regulators and industry stakeholders follows government’s decision to intensify enforcement of compulsory domestic marine insurance for all commercial imports. She stressed that local insurers such as Serene Insurance Company Limited possess the experience, technical expertise, financial strength and underwriting capacity required to manage Ghana’s marine cargo risks at scale.
Mrs Boampong noted that marine insurance is neither new nor unfamiliar to the Ghanaian insurance industry. She pointed to decades of experience and well-established underwriting systems within the sector, including at Serene Insurance.
“Marine cargo insurance is not a new product being introduced because of enforcement,” she said. “It is a mature class of business in Ghana. At Serene Insurance, we have the structures, systems and expertise to handle complex and high-value cargo risks, just as the industry has done for decades.”
She explained that marine insurance capacity is built on capital strength, technical competence and access to international reinsurance markets. According to her, local insurers operate within established reinsurance and retrocession frameworks that allow risks to be spread across global markets.
“Every risk underwritten locally is supported by reinsurance,” she said, noting that this guarantees the settlement of claims even in cases involving large losses.
Mrs Boampong further observed that the industry currently has significant unused capacity, largely due to importers insuring cargo offshore despite a local insurance requirement that has been in place since 2006.
“With renewed enforcement, that capacity can now be deployed to protect Ghanaian importers while keeping premium income within the local economy,” she added.
While the enforcement process is expected to be gradual, signals from insurers such as Serene Insurance suggest that the local market is ready to absorb the increased business as compliance improves. She noted that beyond premium retention, the policy would strengthen Ghana’s insurance industry and contribute to broader financial sector development.
“The Ghanaian insurance industry is ready. Serene Insurance is ready,” she said. “The structures, expertise and financial backing are already in place.”
Her comments come as government begins enforcing compulsory local marine cargo insurance under Section 222 of the Insurance Act, 2021 Act 1061, effective February 1, 2026. The directive is being implemented by the Ministry of Finance in collaboration with the Bank of Ghana, the National Insurance Commission and the Ghana Revenue Authority.
Figures from the National Insurance Commission indicate that only about six percent of Ghana’s imports are currently insured locally, despite the legal requirement existing for nearly two decades. The Ghana Insurers Association estimates that close to one hundred million US dollars in marine insurance premiums is paid annually to foreign insurers, funds that could otherwise support local investment and industry growth.
Ghana’s import volumes underline the scale of the opportunity. In 2024, the country handled an estimated 13.7 million metric tonnes of cargo at its ports, with merchandise imports valued at about 15.2 billion US dollars. These include refined petroleum products, grains, edible oils, frozen foods and heavy machinery.
Daniel F Yeboah, Head of Insurance and Pensions at the Ministry of Finance, noted that the policy could generate close to 300 million Ghana cedis annually when fully implemented. He made the remarks at a recent stakeholder engagement organised by the Ghana Chamber of Shipping.
“Over the years, it has been recognised that this policy must be fully rolled out so that the country can derive its full benefits,” Mr Yeboah said, acknowledging that implementation has been slow.
Africa Live News official platforms
Website https://www.africalivenews.com
X https://x.com/africalivenews2
Facebook https://www.facebook.com/Africalivenews
Instagram https://www.instagram.com/africalivenews
TikTok https://www.tiktok.com/@africalivenews.com
