Develop Micro-Insurance Products to Protect Poor From Climate Shock – Finance Minister

The Minister of Finance, Ken Ofori-Atta, yesterday opened the International Conference on Inclusive Insurance (ICII) with a call on insurance companies in Ghana to develop micro insurance products to protect the poor and vulnerable from the effects of climate change.

Micro or inclusive insurance is an insurance product aimed at the excluded or underserved market.

According to him, the poor were the worst affected by the climate shocks such as floods and drought.

The three-day conference being attended by 450 participants from 52 countries across the world is on the theme "From knowledge to action."

It is being organised by Munich Re Foundation in partnership with the National Insurance Commission (NIC), Micro Insurance Network, Ghana Insurers Association and Insurance Brokers Association of Ghana.

Mr Ofori-Atta who delivered the keynote address said promoting inclusive insurance would help to expand insurance coverage in the country, which was below the Africa average of five per cent.

He said the current floods in Ghana and around the world demonstrated the growing impact of climate change on the environment.

Mr Ofori-Atta said the poor were vulnerable to climate shocks since they did not have the financial capacity to buy insurance.

The Finance Minister appealed to the international donors and the developed economies to support Ghana to raise financial resources to implement initiatives to combat climate change, indicating that Ghana would need about $4.21 billion to implement its National Determined Contributions to combat climate change.

Mr Ofori-Atta commended the Munich Re and partners for organising the ICII conference in Ghana to discuss measures to promote inclusive insurance in Ghana and Africa, stressing that insurance was critical to the development of any economy as it provided funds for long-term development and financial protection to people in times of emergencies.

The Acting Insurance Commissioner, Michael K. Andoh, said the poor had low resilience to and susceptible to climate risks.

"Mr Andoh said access to financial services was a key measure of resilience, saying financial inclusion promoted economic growth and social welfare and financial stability.

Mr Andoh said the conference would provide opportunity to discuss measures to develop innovative micro insurance products to serve the low segment of the society.

The Chairman of the Micro Insurance Network, Lorenzo O. Chan Jr, said the conference would provide opportunity to share ideas, best practices and experience to promote inclusive insurance.

He said the conference would discuss topics such as digital innovation, public-private partnerships, covering the needs of migrant workers, climate risks, sustainability of the inclusive insurance industry, indicating that there was much to do to promote inclusive insurance.

The Chair of the Munich Re Foundation, Reina Bleich, urged the participants to network and collaborate to find solutions to promote inclusive insurance.

She said the conference was being held in Ghana due to the efforts being made in the country to promote inclusive insurance.

Madan Bleich urged the participants to use their expertise to come up with solutions to promote inclusive insurance and also urged development partners and international organisations to integrate inclusive insurance in their programmes.