GUTA opposes NIC’s Local Cargo insurance directive

The Ghana Union of Traders Association (GUTA) has strongly criticised a new local cargo insurance directive issued by the National Insurance Commission (NIC), describing the policy as coercive and poorly consulted.

In a statement dated January 28, 2026, and signed by its Secretary General, Richard Amamoo, GUTA said the directive was introduced without sufficient engagement with key stakeholders and raises serious concerns for the business community.

According to the association, the policy compels traders to purchase insurance from local providers, a move it says violates the principles of free market economics.

“The business community cannot be coerced into purchasing insurance services. This undermines the principles of free market economics,” the statement noted.

GUTA further argued that many suppliers already operate under established international insurance arrangements tied to credit and supply agreements, which should be respected.

“Our suppliers often have insurable interest in imported goods due to credit arrangements and should be allowed to maintain their existing insurance arrangements,” the statement said, adding that suppliers usually have preferred insurers and contractual terms.

The association described the mandatory use of local insurance companies as “morally wrong,” questioning the capacity, quality, and affordability of services provided by domestic insurers.

Rather than enforcing compliance through regulation, GUTA urged local insurance companies to improve their products and competitiveness to attract voluntary patronage from businesses.

“Local insurance companies should focus on enhancing their services to make them more attractive, rather than relying on regulatory fiat,” the statement concluded.

See the full statement below: