Inclusive Insurance: A New Path to Protect Ghanaians and Drive Sustainable Development

Insurance plays a crucial role in building financial security, yet millions of Ghanaians still live without any form of protection. With insurance penetration in Ghana hovering around one percent of Gross Domestic Product (GDP), the need for more accessible and affordable insurance solutions has never been greater. One of the most promising ways to close this gap is through inclusive insurance — an approach that brings protection to the doorsteps of low-income individuals, informal workers, farmers, and small business owners.

Life in Ghana’s dynamic economy comes with many uncertainties. From market fires and floods to health emergencies and crop failures, unexpected events can erase years of hard work and savings in a moment. Unfortunately, many families and small enterprises cannot access conventional insurance products because they are too expensive, too complex, or not designed to fit their circumstances.

Inclusive insurance aims to change this narrative. It focuses on designing insurance products that are affordable, simple, and relevant to the realities of ordinary people. Whether it’s a farmer protecting crops against drought or a mother insuring her family’s health, inclusive insurance ensures that financial protection is within everyone’s reach.

Thanks to digital technology and creative partnerships, the insurance industry in Ghana is finding new ways to reach underserved communities. The use of mobile money platforms has made it possible for people in remote areas to pay small premiums easily, even without a traditional bank account.

Insurance companies are also collaborating with telecommunication firms, cooperatives, and microfinance institutions to deliver insurance through familiar channels. These innovations make insurance more accessible and build trust among people who have never had such coverage before.

According to the National Insurance Commission (NIC), several initiatives are already underway to promote inclusive insurance and support local innovation. The regulator continues to encourage insurers to develop products that serve low-income populations and informal sector workers, who make up the majority of Ghana’s labour force.

Beyond protecting individuals, inclusive insurance has broad economic and social benefits. It strengthens financial inclusion, allowing more Ghanaians to participate confidently in the economy. Small businesses can take calculated risks, farmers can invest in better seeds and equipment, and families can recover faster from setbacks.

More importantly, inclusive insurance aligns closely with the United Nations Sustainable Development Goals (SDGs) — the global blueprint for a better and more equitable future. It contributes to eradicating poverty (SDG 1), promoting good health and well-being (SDG 3), advancing decent work and economic growth (SDG 8), and strengthening climate action (SDG 13).

Despite its promise, the path to widespread inclusive insurance is not without obstacles. A major challenge is low public awareness and trust. Many people still view insurance as unnecessary or unreliable, often due to limited understanding or bad experiences with claim settlements in the past.

Additionally, distribution challenges, especially in rural areas, make it difficult for insurers to reach potential clients. There are also concerns about affordability, as low-income households often prioritize daily survival needs over insurance premiums.

The good news is that these challenges are not insurmountable. Through effective public education, stronger consumer protection, and supportive regulations, the industry can build trust and confidence in insurance services.

To fully realize the benefits of inclusive insurance, stakeholders across sectors must collaborate. The government, through the National Insurance Commission, should continue promoting proportionate regulations that encourage innovation while ensuring fair treatment of consumers. Insurers should invest in customer education and design products that reflect the needs of everyday Ghanaians.

Inclusive insurance represents more than a new business strategy — it is a national opportunity. By ensuring that all Ghanaians, regardless of income or location, can access financial protection, the country can create a more resilient, equitable, and sustainable society. As Ghana continues its journey toward achieving the Sustainable Development Goals, inclusive insurance stands out as a powerful tool to reduce poverty, promote economic stability, and build a future where no one is left behind.