Leveraging the 24-Hour economy: Opportunities for the insurance industry

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By Isaac FRIMPONG (Ph.D.)

As Ghana explores innovative strategies to accelerate economic growth and address structural economic challenges, the concept of a 24-hour economy emerges as a transformative opportunity. By enabling continuous economic activity throughout the day and night, this system fosters longer operational hours, increased productivity, and expanded market access.

A 24-hour economy unlocks immense potential for the insurance industry as businesses and individuals seek solutions to mitigate the unique risks associated with round-the-clock operations. From tailored insurance products to enhanced risk management services, insurers are well-positioned to play a pivotal role in ensuring the resilience and growth of this new economic framework.



This article explores the opportunities a 24-hour economy presents for Ghana’s insurance sector and highlights how the industry can drive innovation and national development.

Why Ghana Needs a 24-Hour Economy Now

Ghana’s economy heavily relies on imports, with limited capacity to process raw materials into finished goods. This dependence, and restricted working hours, have limited productivity and economic growth. To address these challenges, transitioning to a 24-hour economy could offer an opportunity to increase productivity, foster efficiency, and enhance economic resilience as businesses operate continuously to meet demand and minimise waste.

Continuous business operations would reduce production delays, meet growing demand, and expand Ghana’s economic output. It could also reduce reliance on imports by stimulating local production, boosting exports, and creating well-paying jobs in sectors like manufacturing, hospitality, logistics, and services. Additionally, expanding access to public services, such as transportation and healthcare, would enhance citizens’ quality of life.

However, a 24-hour economy is not a heal-all. Potential challenges such as cultural shifts among citizens, intermittent energy supply, security concerns, and infrastructure readiness need to be addressed proactively. While ‘Dumsor’ has been reduced, ensuring a stable energy supply is important.

Investments in renewable energy sources and targeted infrastructure improvements, such as improved lighting in public areas, enhanced police patrols, and faster emergency response rates, are necessary to support night-time operations. To overcome cultural resistance, the concept (a 24-hour economy) could be introduced gradually, allowing businesses and citizens to adapt.

Successful case studies from countries such as South Korea and Singapore offer valuable lessons. South Korea, for instance, established 24-hour logistics hubs and free economic and trading zones to facilitate trade, thereby increasing exports.

Singapore invested in infrastructure, leveraging its location, promoting knowledge work, and implementing safety measures to make its 24-hour economy globally competitive. These examples highlight the importance of customising the 24-hour economic model to align with Ghana’s cultural, infrastructural, and economic needs.

Opportunities for the Insurance Industry

The insurance industry’s primary role is to manage risks and protect businesses and individuals from financial losses. Introducing a 24-hour economy will create new opportunities for insurers to innovate, expand their market, and address new types of risks.

Industries operating round-the-clock will require specialised insurance products to mitigate emerging risks. For instance, liability insurance will be essential for logistics, retail businesses, and other sectors operating continuously.  Workers’ compensation policies can be tailored to address risks of workplace injuries during extended hours. The rise of digital transactions and data usage calls for robust cybersecurity insurance to protect businesses from data breaches.

To use these opportunities, insurers can collaborate with key industries such as transportation, healthcare, and hospitality. These partnerships can drive the development of flexible, on-demand insurance solutions unique to businesses’ operational needs. For example, insurers could introduce ‘pay-as-you-use’ motor vehicle policies for logistics companies operating during nighttime hours or provide specialised health insurance for night-shift workers.

However, seizing these opportunities comes with challenges. Insurers must address the risks associated with higher claims volumes, potential fraud, and the need for continuous customer support. Investing in advanced technologies, such as AI-driven claims processing and real-time customer service systems, will be essential to ensure efficiency and transparency. Furthermore, insurers can enhance public trust by improving claim resolution times and educating businesses on the value of insurance in a 24-hour economy.

Addressing these demands strategically can help the insurance industry play a pivotal role in Ghana’s economic transformation. By offering tailored solutions and leveraging technology, insurers can attract underserved markets, foster greater trust, and significantly increase Ghana’s insurance penetration rate, which currently stands at a low 1 percent.

Policy Recommendations

To maximise the benefits of the 24-hour economy for the insurance industry, policymakers should prioritise the following actions:

Establish Standards and Regulations

  • Collaborate with businesses and industry stakeholders to develop clear standards for worker safety, operational efficiency, and cybersecurity within a 24-hour economy. This will help mitigate emerging risks and ensure businesses meet minimum safety requirements.
  • Streamline regulatory processes to reduce insurers operational hold-ups. Simplified approval processes and reduced compliance costs will enable insurers to offer competitive premiums, ultimately increasing insurance penetration.

Provide Incentives for Businesses and Insurers

  • Offer targeted tax incentives to businesses that adopt 24-hour operations while ensuring worker safety and operational compliance. Incentives could also include reduced premiums for companies that implement robust risk mitigation strategies.
  • Encourage insurers to innovate by providing tax breaks for the development of new products tailored to round-the-clock operations, such as flexible liability coverage and worker injury policies for night shifts.

Enhance Public Awareness and Trust

  • Launch nationwide awareness campaigns to educate businesses and workers on the importance of insurance in managing risks associated with 24-hour operations. Highlight the benefits of insurance, such as financial protection, risk mitigation, and business continuity.
  • Foster public confidence through government-insurer partnerships that promote transparency and trust in insurance products. This collaboration can include co-hosted educational workshops, pilot programmes, and publicly available data on insurance benefits.

By implementing these recommendations, policymakers can create a conducive environment for insurers to innovate, businesses to thrive, and individuals to work securely in a 24-hour economy. These actions will ultimately strengthen Ghana’s insurance sector, increase penetration rates, and enhance economic resilience.

Conclusion

A 24-hour economy presents Ghana with a transformative opportunity to unlock growth across all sectors, and the insurance industry is well-positioned to play a pivotal role in this journey. By driving innovation, offering tailored solutions for emerging risks, and mobilising capital, insurers can attract foreign investment and reduce the financial burden on the government.

To seize this opportunity, policymakers and industry leaders must embrace bold strategies and foster strategic partnerships. This includes addressing challenges such as energy supply, public trust, and infrastructure readiness to create a conducive environment for insurers and businesses.

With visionary leadership, targeted investments, and a commitment to collaboration, Ghana’s insurance industry can thrive in a 24-hour economy, enhancing resilience, fostering economic inclusion, and contributing to sustainable national development. The time to act is now.

Isaac is a Researcher and Consultant

[email protected]

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