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Ghana: New law requires employers to purchase certain types of insurance

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By Michael Dzormeku | March 29, 2021

The new law adds group life and workmen’s comp to the list of required insurance and mandates corporate governance standards for insurers.

Employer Action Code: Act

The Insurance Law, 2020, which received presidential assent in February 2021, aims to drive the growth of the domestic insurance industry by mandating the purchase of certain types of insurance as well as by strengthening internal governance requirements and the supervisory framework for insurers. Currently, total insurance premiums represent about 1% of GDP, according to the Bank of Ghana. Implementation of the law is expected to take place in 2021.

Key details

  • Employers with 15 or more employees must take out a group life insurance policy covering all employees; the level of coverage is not specified. Though no such mandate applied previously, over two-thirds of companies surveyed in 2020 by Willis Towers Watson provide insured death-in-service and accidental death coverage for their employees.
  • Employers with 15 or more employees must insure their liability for workmen’s compensation (under the Workmen’s Compensation Act 1987). Previously, employers had the option to self-insure.

Employer implications

Affected employers should consider the actions they might need to take in order to comply with the new mandates, as well as any cost effects and employee communication implications. The National Insurance Commission is expected to provide guidance on the minimum level of life insurance required.


Michael Dzormeku

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