…as govt removes it from VAT exemption list
It has been revealed that the cost of non-life (general) insurance in Ghana, in the form of insurance premiums on policies taken out by the insuring public, will now rise as it has been taken off the Value Added Tax exemption list by government. This revelation was made by the President of the Chartered Insurance Institute Ghana, Solomon Lartey, at the 2024 edition of the institute’s Annual Presidential Cocktail held last week in Accra.
This means insurance premiums could rise by as much as 17.5 percent if non-life insurers decide to pass on the entire tax burden to their policyholders, but how much of it will be passed on will depend on the stance of each individual insurance company. The move by government has largely gone under the public’s radar even as its plans to introduce VAT on electricity is attracting stiff resistance from both organised labour and consumer protection bodies.
Warned Lartey at the cocktail which attracted a large gathering of insurance professionals: “The removal of non-life insurance from the VAT exemption list would lead to increased cost of insurance and adversely affect insurance penetration in Ghana. This calls for doubling of our efforts as insurance professionals to deepen the understanding of insurance generally, and the products we offer specifically, in order to either maintain our current low insurance penetration rate or improve upon it. Our work is cut out for us,” he noted.
He also pointed to the need for members to maintain high professional standards and deepen insurance education in the light of current international geopolitical and economic developments. “While the Russia-Ukraine conflict seems to have been navigated and relegated to the background, current unrest in the middle east has also shaken the insurance landscape throwing various reinsurance and insurance arrangements (like marine cover) out of balance.”
This year, the CIIG plans to engage on-road shows to increase understanding and appreciation of insurance among the actual and potential insuring publics. It also plans this year to position itself as a truly registered professional body under the Professional Bodies Registration Act 1973 (Act 143). To this end, it will engage Parliament and the Ministry of Education as well as the Registrar-General, Mrs Jemima Oware, and her team. Already, earlier this week, the institute’s leadership engaged its council, its patrons, CEOs and members of its various committees.
Over the coming days, the CIIG intends to commence and release details of professional training programmes, which comprise its Continuous Professional Development (CPD) programme and the Management Development Programme (MDP).
To this end, the institute will award CPD points for corporate training programmes and partner CII United Kingdom for some MDPs in Ghana or in the UK or in any other member-country of the CII. A Membership Solutions Portal is being introduced to facilitate the interface between members and the CIIG’s secretariat. It will enable members to upload their CPD information for the necessary points and recognition and enable members to access materials for their respective categories of membership.
This year, new members will be inducted, a conference is planned, and the CIIG’s Annual General Meeting will be held.
With regards to the 2024 edition of the Annual Insurance Awards, comments and suggestions will be taken; and the criteria for the selection of awardees will be reviewed although the institute aims to launch this year’s edition of the awards much earlier than in previous years.
