The battle for transparency in Ghana’s insurance sector has gained significant momentum as the Insurance Brokers Association of Ghana (IBAG) officially joined forces with IMANI Africa to demand an end to political interference in the placement of state insurance.
The collaboration follows a detailed petition submitted by the think tank, which alleges that the current system of “state capture” is stifling competition, inflating costs, and undermining the financial health of the State Insurance Company (SIC).
The “state capture” paradox
At the heart of the controversy is what experts call the “Insurance Paradox.” Recent reports suggest that a few politically connected monopolies are increasingly dominating the placement of insurance for state-owned enterprises (SOEs) and government assets.
Instead of a competitive bidding process that ensures the best coverage at the most sustainable price, the petition claims that insurance contracts are being “hand-picked” by political actors. This practice has reportedly sidelined many indigenous brokers and led to a concentration of risk that could leave the state vulnerable in the event of a major disaster.
Calls for an SIC “reset”
The petition also highlights a crisis within the SIC. Once the undisputed leader of the industry, the SIC is now described as being in need of a “strategic reset.”
Industry insiders argue that the company has been hindered by its reliance on government mandates rather than market innovation. By decoupling political influence from SIC’s operations, IMANI and the brokers believe the company can return to its role as a robust, competitive player that provides genuine value to the taxpayer.
“We are seeing a trend where greedy monopolies are protected at the expense of the state’s long-term interest,” a representative from the insurance brokerage community noted. “Joining this petition is about protecting the professional integrity of our industry.”
Brokers demand fair play
For the Insurance Brokers Association, the issue is one of professional survival and ethics. The association argues that the exclusion of qualified brokers from state insurance placements violates the spirit of the Insurance Act and deprives the state of expert risk management advice.
The brokers are calling for:
● An immediate audit of all current insurance placements for State-Owned Enterprises.
● A transparent, open-tender process for all government-related insurance contracts.
● Stronger enforcement of anti-monopoly regulations within the energy and infrastructure insurance sub-sectors.
The economic stake
With state assets ranging from power plants to national monuments valued in the billions of dollars, the stakes for the Ghanaian economy are immense. The IMANI petition warns that if the “greedy monopolies” are not checked, the resulting lack of quality reinsurance and professional oversight could lead to catastrophic financial losses if a major claim arises.
The government and the National Insurance Commission (NIC) have yet to issue a formal response to the joint petition. However, as public pressure mounts, the insurance industry is bracing for a potential overhaul of how the nation protects its most valuable assets.
