Micro insurance is a new phenomenon in Ghana which the National Insurance Commission is promoting. As of now, five companies have signed on to this initiative and have already got to work. But I wonder why now, considering that there are much more people in the informal sector who also need some sort of protection, just as the wealthy and big businesses. I am talking here about more than 70 percent of the population of the country.
In the first place I believe the marginalization of the poor and their businesses from the mainstream insurance industry was a big miscalculation by the companies and banks as well. If one considers the huge potential of this vastly untapped market and how it can bring about a radical change in the lives of the affected people, then one begins to see the enormity of the problem I am talking about.
The proliferation of Micro-insurance policies in Ghana can only be a welcome gesture as it helps to lift people from poverty while helping them to save for the future. At the moment, many small scale business people in Ghana are embracing the concept of micro-insurance, but it is my worry that not all those who sign up are aware of all the issues involved. Therefore, it would a necessity for the companies to take it as a responsibility to adequately inform their clients. And in this our world of commercialization, I would also like to urge the clients to inquire fully about their policies before they buy to protect them against exploitation. Micro-insurance is good but care should be taken not to lead the already less privileged into more poverty.