The Chief Executive of the Ghana Shippers’ Authority, Professor Ransford Gyampo, has raised alarm over the widespread ignorance among importers concerning cargo insurance, warning that this knowledge gap is placing businesses in serious jeopardy.
Addressing a mandatory local insurance awareness workshop on Wednesday, April 8, Prof. Gyampo revealed that roughly 75% of Ghanaian importers possess little to no understanding of the insurance coverage on their shipments, and are also poorly informed about their entitlements and responsibilities within the shipping chain. He observed that even though the majority of goods entering the country come under Cost-Insurance-Freight (CIF) terms, barely 6% are covered by local insurers, raising doubts about how effectively Ghanaian importers are protected against risks.
He further noted that this situation has led to considerable capital drain, as many importers keep turning to foreign insurers, causing insurance premiums to be sent abroad.
“It is also obvious that insurance premiums paid abroad deprive the local insurance industry of revenue that could otherwise stimulate economic growth, create jobs, and enhance technical capacity within Ghana’s financial services sector,” he stated.
Cargo insurance is meant to shield goods during transit from perils like damage, theft, or loss.
Under the CIF arrangement, the seller usually arranges insurance for the goods up to the point of destination; however, when that insurance is sourced from foreign firms, the financial advantages stay outside Ghana unless local underwriters provide the coverage.
