NIC Collaborates with FSD Africa to Foster Inclusive Insurance through Technology-Driven Ecosystem

The National Insurance Commission (NIC) has partnered with the Kenyan-based Financial Sector Deepening Africa (FSD) to modernize and improve the insurance technology firm sector in Ghana. This partnership aims to digitize the industry, making it more accessible to the citizens of the country.

In 2022, Ghana initiated the Innolab Accelerator program, a platform where ten insurtechs underwent four-month mentoring sessions focusing on groundbreaking solutions for the insurance industry. Among these firms, FigTech Ghana, Abisah, and Benew received €20,000 prize awards each from GIZ, the German state-owned international development assistance agency. Ghana's Insurance Act of 2021 (Act 1061) introduced a new licensing category called the 'Innovative Insurance License' specifically tailored for innovative insurers, reinsurers, brokers, and agents. These licenses, initially granted for up to two years, can be extended, aiming to establish a regulatory sandbox conducive to promoting and supporting innovation.

At a press briefing regarding FSD's InnoLab InsurTech held on October 27, 2023, in Accra, Michael Andoh, the Acting Commissioner of the NIC, emphasized that this program is a direct reaction to the expanding digitization across multiple spheres of life. He highlighted the pervasive shift towards online living and transactions, emphasizing the imperative for the insurance sector to adapt to this technological revolution to ensure its ongoing relevance and survival.

He also emphasized the NIC's strategic goal of creating a facilitating environment that enhances insurance accessibility, nurtures market development, and augments at a press conference regarding FSD's InnoLab InsurTech held on October 27, 2023, in Accra, Michael Andoh, the Acting Commissioner of the NIC, explained that this program is a direct reaction to the expanding digitization across multiple spheres of life. He highlighted the pervasive shift towards online living and transactions, emphasizing the imperative for the insurance sector to adapt to this technological revolution to ensure its ongoing relevance and market penetration. He explained that NIC aims to finalize and issue its sandbox directive this year, welcoming the initial batch of insurtechs into this innovative environment.

Andoh highlighted the NIC's initiation of the first micro-insurance regulations globally in 2007, significantly contributing to the expansion of micro and inclusive insurance. He also disclosed plans for a technology forum in December, intending to enlighten tech firms about the challenges within the insurance market and foster pivotal solutions for transforming the industry. Andoh expressed gratitude to FSD Africa and GIZ Ghana for their unwavering support in enhancing NIC's staff capacity and providing technical assistance to the industry.

Elias Omondi, a representative of FSD Africa, highlighted the initiative's objective of fostering positive change. He further explained their commitment to making finance beneficial for Africa's future by understanding people's needs, their environments, and supporting change agents capable of driving necessary transformations. Omondi noted their support for over twelve innovators in Ghana and their ongoing efforts to aid innovators in creating the required change and resilience essential for Ghana's development.