Serene Insurance CEO Backs Local Capacity to Underwrite Ghana’s Marine Cargo Risks

 

Chief Executive Officer of Serene Insurance and 2^nd Vice-President/Chairman of the Ghana Insurers Association (GIA), Mercy Naa Koshie Boampong, has strongly defended the capacity of local insurance companies to provide cutting-edge, growth-oriented risk cover regimes for marine/aviation cargo to safeguard import trade in the long term.

Citing Serene Insurance as an example of local capacity, Mrs. Boampong noted her company was well-placed financially and technically to support the country’s import trade through marine cargo insurance.

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

She noted that marine insurance is not a new or unfamiliar line of business for the Ghanaian insurance industry and for that matter Serene Insurance Limited pointing to years of experience and established underwriting systems.

“Marine cargo insurance is not a new product being introduced because of enforcement,” Mrs. Boampong 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.”

Capacity Built on Capital, Expertise and Reinsurance

Mrs. Boampong explained that marine insurance capacity is 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 ensures claims can be settled even in the case of high-value losses.

She observed that the industry currently has significant unused capacity, largely because many importers have 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.

Industry Signals 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,” she said. “The structures, expertise and financial backing are already in place.”

Renewed Push for Local Insurance Enforcement

The assurance comes as 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 percent 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 US$100 million in marine insurance premiums is paid annually to foreign insurers, which are funds that could otherwise support local investment and industry growth.

Significant Economic Opportunity

Ghana’s import volumes highlight 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 US$15.2 billion. 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, said the policy could generate close to GH₵300 million annually when fully implemented. He was speaking 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.