Desiring to have a robust marine insurance market in Ghana, the shipping and underwriting authority in the former West Coast region are understudying the Nigeria market.
This is coming as Ghana strengthens capacity to explore opportunities offered in its recently amended 50-year-old shipping law.
The new legislation amends the existing 50-year-old legislation and aims to regulate the commercial activities of shippers. The law specifically targets unfair and excessive charges that have been a burden on traders using Ghana’s sea and airports, as well as land borders for international trade.
The law further mandates that the Ghana Shipping Authority (GSA) must now negotiate and approve all charges in the commercial shipping sector, including port fees, handling charges and other related costs that have previously been imposed by service providers.
Additionally, the law seeks to position Ghana as a preferred transit trade channel for its landlocked neighbours, including Burkina Faso, Mali and Niger – a strategy that, if successful, will enhance the sector’s financial contribution to the economy.
The National Insurance Commission (NAICOM) recently hosted the Ghana Cargo Technical Committee, represented by officials of the National Insurance Commission (NIC), Ghana Insurance Association (GIA), Ghana Shippers Association (GSA), Ghana Revenue Authority (GRA), and the Institute of Chartered Shipbrokers (ICS) recently visited Nigeria on a working visit.
On Nigeria side are representatives of the Nigerian Insurers Association (NIA), Nigerian Council of Registered Insurance Brokers (NCRIB), Nigeria Customs Service, Nigerian Port Authority (NPA), Nigerian Shippers Council, Nigerian Maritime Administration and Safety Agency (NIMASA), Council for Regulations of Freight Forwarding in Nigeria, ANCLA, NAGAFF, among others.
In his opening remarks, Olusegun Omosehin, the commissioner for Insurance/CEO, NAICOM, represented by Julius Odidi, head of Lagos Control Office of the Commission said, the forum is an avenue for the Nigerian insurance and marine operators to share their practical knowledge with the Ghana Cargo Technical team, while also gaining experience on the operation of cargo insurance in Ghana from them in return.
The commissioner said the knowledge sharing session is an avenue for the stakeholders to discuss technicalities of marine cargo insurance in Nigeria, understand the processes, challenges, successes, and explore potential collaborations.
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“We appreciate the contributions of all our stakeholders. I am sure our Ghanian counterparts would be leaving with a lot of knowledge from our success story and challenges,” he said.
Felicia Mustapha, former chairman of Nigerian Insurers Association Marine Officers Committee (NIA-MOC), in a presentation titled, “Marine Cargo Insurance: The Role of Port Operators in Nigeria, and the Activities of the Marine Offices Committee (MOC) of the NIA, said marine cargo insurance play a vital role in the maritime trade by safeguarding goods against the risks they encountered during international transportation.
According to Mustapha, port operations in Nigeria are regulated by the Nigerian Port Authority (NPA), which serves as the landlord, while terminal operations are handled by private concessionaires, including APM Terminal, TICT, and Port and Cargo Handling Services Ltd, among others.
She explained that insurers rely on safety standards and handling protocols maintained by port operators when assessing cargo insurance coverage, and operates within a regulated framework overseen by NAICOM, ensuring compliance with international standards while addressing local realities.
Wale Oshodi, a governing board member of the NCRIB, also discussed the collaborative role of insurance intermediaries, adding that brokers ensure to interpret the terms and condition governing marine cargo insurance to the consignee and how to process a claim when it occurs.
Also representing the Nigerian Custom Service (NCS), Yahaya Usman, deputy comptroller explained that marine cargo insurance in Nigeria covers goods from point of transit to delivery, noting that the NCS carries out its activities based on an Act of 2023 binding it.
Fred Asiedu-Darteh, team lead of The Ghana Cargo Technical Committee of the Ghana Shippers Authority, expressed gratitude to NAICOM for hosting the engagement, saying it provided valuable insights into Nigeria’s cargo insurance practices and would assist in the implementation of Ghana’s new marine insurance policy.
