Atwima Nwabiagya MP pushes NIC for action on Ghana’s 1% insurance penetration

The Member of Parliament for Atwima Nwabiagya North, Frank Yeboah, has challenged the National Insurance Commission (NIC) to implement practical measures to increase insurance penetration, questioning the effectiveness of relying on regulatory directives to expand coverage.

He demanded concrete interventions to boost public awareness, restore confidence in insurance products and extend coverage to underserved populations, particularly those in the informal sector.

Mr Yeboah, a member of Parliament’s Public Accounts Committee, made the demand when NIC management appeared before the Committee on Tuesday, October 13, 2026, to respond to audit queries.

Citing the Ministry of Finance’s Insurance Sector Strengthening Strategy, issued in May 2025, he said Ghana’s insurance penetration rate stood at about one per cent, against the African average of three per cent and the global average of six per cent.

The strategy identified limited public awareness and public distrust as factors contributing to the low penetration rate.

Responding to his concerns, the Head of Prudential Supervision at the NIC, Mohammed Hafiz Isahaku, said the Commission was strengthening customer protection requirements to improve public confidence, particularly by ensuring that legitimate insurance claims were paid.

He cited the Commission’s Conduct Directive, which requires regulated entities to treat customers fairly and meet their obligations when claims become due.

However, Mr Yeboah insisted on practical interventions to increase uptake.

“My problem is that practically, what are you doing to increase the penetration rate?” he asked.

The NIC management acknowledged the challenge of extending insurance coverage beyond the formal sector, explaining that a significant protection gap persisted because many people in the informal economy were not adequately served by insurance providers.

It said it had developed a framework covering demand-side and supply-side initiatives to encourage insurers to design products that meet the needs of underserved groups.

The Commission identified the Campus Care Initiative and the Sandbox Initiative as two measures being pursued to expand coverage.

While the Campus Care Initiative targets the campus population, the Sandbox Initiative allows insurance companies to test innovative solutions designed to meet the needs of the informal sector.