Bridging The Protection Gap: UNDP Report Highlights Ghana’s Insurance Challenges

Kutl Ahmedia


In a recent revelation, a United Nations Development Programme (UNDP) report has shed light on the alarming reality that 70% of Ghanaians lack access to insurance coverage, exposing significant vulnerabilities to various risks and hazards. The findings, unveiled during a stakeholder workshop, underscore the urgent need to address gaps in inclusive insurance and risk financing to pave the way for sustainable development and resilience-building efforts in Ghana.

The diagnostic study, commissioned by UNDP and supported by its Insurance and Risk Financing Facility, reveals a stark disparity between the growing risks faced by communities in Ghana, including fire, flood, drought, and diseases, and the inadequate insurance coverage available to mitigate these risks. Notably, the report highlights the impact of climate change, exacerbating the frequency and severity of weather-related disasters, alongside the challenges posed by the COVID-19 pandemic.

Dr. Angela Lusigi, UNDP Resident Representative in Ghana, emphasized the imperative of expanding access to affordable insurance and risk financing as a crucial step towards achieving the Sustainable Development Goals (SDGs) and building resilience in the face of crises. She underscored UNDP's commitment to collaborating with local partners to mobilize resources and support the implementation of comprehensive disaster prevention and response plans.

The diagnostic study also underscores the potential of the insurance industry to drive economic growth and resilience-building efforts in Ghana. With the industry experiencing significant growth in recent years, averaging 25% annually, there is an opportunity to leverage this momentum to enhance access to tailored insurance products, particularly for vulnerable sectors such as agriculture.

Albert Oko Dagadu, Head of Actuarial Unit at the National Insurance Commission, emphasized the importance of extending insurance coverage to underserved sectors like agriculture, highlighting the newly introduced Agricultural Insurance Fund as a step towards subsidizing insurance costs and promoting resilience among farmers.

Key recommendations from the report include the establishment of a stakeholder hub to coordinate efforts, enhancing the enabling environment for insurance, and bolstering capacity-building initiatives. These measures are crucial for expanding access to affordable insurance and risk financing products, thereby reducing the adverse impacts of disaster risks on communities across Ghana.

Looking ahead, the findings of the diagnostic study are expected to inform the development of targeted interventions supported by UNDP’s Insurance and Risk Finance Facility. By integrating insurance expertise into development frameworks and financing mechanisms, Ghana aims to strengthen its resilience to climate risks and contribute to the global objectives of the InsuResilience Global Partnership Vision 2025.

In recognition of Ghana's proactive approach to addressing insurance challenges, Jan Kellett, UNDP Senior Advisor and Corporate Lead on Insurance and Risk Financing, commended the country for its commitment to advancing resilience-building efforts and leveraging innovative financing solutions to protect vulnerable populations.


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