The National Insurance Commission (NIC), Ghana’s regulatory authority for the industry, reportedly has instituted a new regulatory framework that is intended to promote the microinsurance sector. According to a statement attributed to Issac Yaw Boabeng, head of marketing, research and external affairs at NIC, insurance companies can now create, market and sell new types microinsurance products on a provisional basis as long as the provider conducts a four-week performance study of the product for submission to NIC for approval. The regulatory framework reportedly does not dictate premium rates, but claims are required to be paid to clients within 10 days of submission. In addition, the terms and exclusions of the microinsurance products must be presented in “simple” terms, but specifics were not disclosed.
The new regulations were announced at “Ghana Micro Insurance Day,” an event hosted by NIC and Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ), an international cooperation agency of the German government, to promote microinsurance in Ghana. As of 2010, it was estimated that 4.1 percent of the adult population in Ghana had any form of insurance.
By Brian LeBlanc, Research Associate
Sources and Additional Resources:
Ghana Web article, http://www.ghanaweb.com/GhanaHomePage/business/artikel.php?ID=266955
MicroCapital article, April 9, 2013, “MICROFINANCE PAPER WRAP-UP: “Microinsurance in Ghana: Microinsurance as a Means of Insurance Sector Development; by Jan Meissner; published by the National Insurance Commission (NIC), Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ),” https://www.microcapital.org/microfinance-paper-wrap-up-microinsurance-in-ghana-microinsurance-as-a-means-of-insurance-sector-development-by-jan-meissner-published-by-the-national-insurance-commission-nic/
MicroCapital article, February 12, 2013, “MICROCAPITAL BRIEF: National Insurance Commission of Ghana Announces New Regulatory Regime, New Book Released on Promoting Microinsurance in the Country,” https://www.microcapital.org/microcapital-brief-national-insurance-commission-of-ghana-announces-new-regulatory-regime-new-book-released-on-promoting-microinsurance-in-the-country/
MicroCapital article, June 13, 2012, “MICROFINANCE PAPER WRAP-UP: ‘Perceptions of (Micro)Insurance in Southern Ghana: The Role of Information and Peer Effects;’ by Lena Giesbert and Susan Steiner, published by DIW Berlin.” https://www.microcapital.org/microfinance-paper-wrap-up-perceptions-of-microinsurance-in-southern-ghana-the-role-of-information-and-peer-effects-by-lena-giesbert-and-susan-steiner-published-by-diw-berlin/
MicroCapital article, May 23, 2012, “MICROCAPITAL BRIEF: National Insurance Commission (NIC) of Ghana Targets 10% Microfinance Penetration in Three Years,” https://www.microcapital.org/microcapital-brief-national-insurance-commission-nic-of-ghana-targets-10-microinsurance-penetration-in-three-years/
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROFINANCE PAPER WRAP-UP: “Driving Digital Financial Services in Africa Through Merchant Acceptance of Digital Payments,” published by Alliance for Financial Inclusion (AFI)
- MICROCAPITAL BRIEF: Papara of Turkiye Acquires Rebellion Pay Mobile Money Service from Beka Finance of Spain in Cash, Equity Deal
- MICROFINANCE PAPER WRAP-UP: “Agritech and Fintech Providers in East and Southern Africa: A Landscape Assessment;” published by IFAD, SAFIN
- MICROFINANCE PAPER WRAP-UP: “2023 Microfinance Index Report,” Published by 60 Decibels
- MICROFINANCE EVENT: International Conference on Inclusive Insurance (ICII); October 23-27, 2023; Accra, Ghana
