High VAT burden, overregulation: IBAG president raises key issues facing insurance sector in a meeting with Bawumia
Dr Bawumia stated that these proposals make strong policy sense and have the potential to transform the insurance brokerage industry
On September 30, 2021, the President of the Insurance Brokers Association of Ghana (IBAG), Mr. Stephen Kwarteng Yeboah, met with Flagbearer of the New Patriotic Party (NPP) Dr Mahamud Bawumia to discuss ways to boost Ghana's insurance industry. During the meeting, Mr. Yeboah highlighted a series of key issues faced by the sector:
Firstly, he emphasized the high Value Added Tax (VAT) burden imposed on insurance and called for the exemption of micro-insurance from VAT. Secondly, Mr. Yeboah urged the creation of a single regulatory body to replace the current over-regulation of the industry.
Thirdly, he proposed developing agricultural insurance with government support, recognizing the potential benefits this would bring to the sector. Fourthly, Mr. Yeboah advocated for enforcing the compulsory use of local brokers to promote Ghanaian businesses within the insurance market.
Fifthly, he suggested compulsory Group Life and Workmen's Compensation insurance to better protect policyholders and employees. Lastly, Mr. Yeboah proposed the introduction of decennial liability insurance for road construction, a measure aimed at safeguarding the interests of all parties involved in such projects.
Upon hearing these proposals, Dr Bawumia expressed that they made strong policy sense and had the potential to transform Ghana's insurance brokerage industry. He assured Mr. Yeboah and his team that he, along with his team, would continue to engage IBAG in further policy discussions for the benefit of the industry and Ghana as a whole.
Written by urgent.news from 3News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
