Insurance firms well-positioned to handle marine cargo risks — Serene Insurance boss

Local insurance companies have the strength, expertise and financial backing to fully support Ghana’s marine cargo insurance needs, the Chief Executive Officer (CEO) of Serene Insurance, Mercy Naa Koshie Boampong, has assured.

She explained that marine insurance was not new to the local industry and was not being introduced because of the recent enforcement drive.

“Marine cargo insurance is not a new product being introduced because of enforcement.

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 said in a statement issued by Serene Insurance.

The assurance to importers, regulators and industry stakeholders comes on the back of the government’s decision to intensify enforcement of compulsory domestic marine insurance for all commercial imports.

The assurance comes as the government begins enforcement of 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, working with the Bank of Ghana, the National Insurance Commission (NIC) and the Ghana Revenue Authority (GRA).

Figures from the NIC indicate that only about six per cent of Ghana’s imports are currently insured locally, despite the legal requirement having been in place for nearly two decades.

The GIA estimates that close to $100 million in marine insurance premiums is paid annually to foreign insurers, which are funds that could otherwise support local investment and industry growth.

Mrs Boampong who is also the Chairman of the Ghana Insurers Association (GIA), emphasised that local insurers such as Serene Insurance Company Limited possessed requisite experience, technical know-how, the financial muscle and ability to underwrite Ghana’s marine cargo risks at scale.

Capacity

Mrs Boampong explained that marine insurance capacity was driven by capital strength, technical expertise and access to international reinsurance markets.

She said local insurers operate within well-established reinsurance and retrocession arrangements that allow risks to be shared across global markets.

“Every risk underwritten locally is supported by reinsurance,” she said, adding that this ensured claims could be settled even in the case of high-value losses.

She observed that the industry currently had significant unused capacity, largely because many importers had continued to insure their cargo offshore, despite a local insurance requirement that has existed since 2006.

“With renewed enforcement, that capacity can now be put to use to protect Ghanaian importers, while keeping premium income within the local economy,” she said.

Readiness

While enforcement is expected to be gradual, assurances from insurers such as Serene Insurance suggest that the local market is prepared to absorb the business as compliance improves.

Mrs Boampong said beyond retaining premiums locally, the policy would help strengthen Ghana’s insurance industry and support broader financial sector development.

“The Ghanaian Insurance Industry is ready! Serene Insurance is ready.

The structures, expertise and financial backing are already in place,” she added.

Economic opportunity

Ghana’s import volumes highlight the scale of the opportunity. In 2024, the country handled an estimated 13.7 million tonnes of cargo at its ports, with merchandise imports valued at about $15.2 billion.

These include refined petroleum products, grains, edible oils, frozen foods and heavy machinery.

According to the Ministry of Finance, the policy could generate close to GH¢300 million annually when fully implemented.