GUTA rejects unilateral implementation of local cargo insurance directive

The Ghana Union of Traders Association (GUTA) has raised concerns over the government’s decision to implement the local cargo insurance directive, describing the move as unilateral and lacking adequate stakeholder consultation.

In a statement issued on Wednesday, signed by GUTA’s Secretary General, Richard Amamoo,
stated that its written request for an emergency meeting to discuss the implications of the policy had gone unanswered.

According to the union, forcing businesses to purchase insurance from local providers undermines free market principles. “Insurance service cannot be imposed: The business community cannot be coerced into purchasing insurance services. This undermines the principles of free market economics,” the statement said.

GUTA further emphasized that local insurers must demonstrate competitiveness and attract clients through quality services rather than regulatory fiat. The union also highlighted the role of suppliers, noting that they often have insurable interest in imported goods due to credit arrangements and should be allowed to maintain their existing insurance agreements.

“Suppliers typically have preferred insurance companies and terms, which should be respected,” the statement added, while cautioning against penalizing businesses for not using local insurers.

The union questioned the capacity and experience of domestic insurance companies, noting their lack of patronage from Ghanaian businesses.

“Local insurers lack a track record: GUTA questions the capacity, experience, and affordability of local insurance companies, given their lack of patronage from Ghanaian businesses,” the statement read.

In a related development, the Coalition of Concerned Exporters, Importers, Traders and Freight Forwarders, together with the Food and Beverages Association of Ghana (FABAG) and the Traders Advocacy Group Ghana (TAGG), have also rejected the Ministry of Finance’s directive compelling all marine cargo bound for Ghana to be insured with local insurance companies.

The groups described the policy, intended to enforce Section 222 of the Insurance Act, 2021 (Act 1061), as an unnecessary intrusion into private business decisions. They argued that the directive amounts to regulatory overreach driven by lobbying from local insurance firms, rather than sound economic reasoning, and warned that forcing compliance would only increase the cost of doing business and ultimately burden consumers.

The coalition further stressed that marine cargo insurance represents a private commercial risk between buyers, sellers, and financiers, with no third-party public risk to justify compulsory regulation.

GUTA has called on the National Insurance Commission and other relevant authorities to immediately halt the implementation of the directive and engage stakeholders meaningfully to address the concerns raised.