As heavy rains wreak havoc across Accra and other parts of Ghana, the Executive Director- Finance and Admin. of Sunu Assurance, Mr Gideon Sosu, is sounding the alarm on the country’s low adoption of property and flood insurance, which continues to leave homes and businesses vulnerable to financial ruin.
In an interview with Pent News following the recent floods, Mr Sosu lamented that many affected properties could have been protected had their owners secured even basic insurance coverage.
‘In developed countries like the UK and the US, these protections are often embedded in rent. So, when tenants pay their rent, it includes premiums for disaster-related risks,’ he noted. ‘Unfortunately, in Ghana, most renters and small businesses consider insurance optional and often ignore it until disaster strikes.’
Mr Sosu stressed that basic property insurance in Ghana is affordable. However, a lack of awareness, trust, and enforcement continues to hinder uptake, particularly among informal traders and urban dwellers in flood-prone areas.
Adding to the challenge, recent government fiscal policies, including the introduction of VAT on non-compulsory insurance premiums, have further discouraged adoption.
‘We’re working to expand insurance penetration in a climate-vulnerable country, yet the government taxes the very policies we are trying to promote. It sends the wrong message and drives people away,’ he said.
He argued that VAT on non-compulsory policies like property and flood insurance disproportionately impacts low-income communities, making protection even less accessible to those who need it most.
To address the issue, he called for a national rethink on how insurance is integrated into housing and urban planning. He advocates for policy reforms that could embed insurance within rent agreements, particularly in high-risk zones, ensuring wider coverage and financial protection against disasters.
With Ghana’s vulnerability to climate change and extreme weather increasing, the push for a more resilient and insured society has never been more urgent. As the rains continue, stakeholders hope that heightened awareness will translate into tangible action.
Pent News
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