$115 Million in Claims Paid in Ghana’s Upstream Sector, Highlights Importance of Insurance

Takoradi, Ghana: Ms. Gertrude Adwoa Ohene-Asienim, Executive Director of Whitestone Shipbrokers Ghana, revealed that approximately $115 million had been paid as claims in the upstream sector of the oil and gas industry. This substantial sum underscores the critical need for comprehensive insurance in this high-risk sector.

According to Ghana News Agency, the high financial risks associated with accidents, losses, or damages in the industry necessitate robust insurance cover. She emphasized the principle of indemnity, highlighting that insurance helps businesses recover from losses without suffering setbacks. Ms. Ohene-Asienim pointed out the collaboration between oil companies and insurance firms in Ghana, leading to the formation of the Ghana oil and gas insurance pool. This pool allows for the sharing of high-risk burdens among insurers and includes reinsurance arrangements with both local and foreign companies.

Speaking after a plenary session at the 2023 Local Content Concern and Exhibition in Takoradi, Western Region, Ms. Ohene-Asienim discussed the necessity of insurance for businesses operating in the upstream sector. The conference, themed '10 years of Local Content in Ghana's Upstream Petroleum Industry: Achievements, Challenges and Prospects,' addressed various aspects of the industry, including risk mitigation and insurance practices.

Further, Ms. Ohene-Asienim commented on the tendency of Ghanaian businesses to rely on the 'God-Factor' for protection, stressing the importance of systemic preparation through insurance. She advocated for broader insurance coverage, not only for business assets but also for life insurance, to safeguard against unforeseen tragedies.

The National Insurance Commission was commended for its efforts in sensitizing stakeholders, including freight forwarders, importers, exporters, postal services, and others, to foster a deeper understanding and participation in insurance practices.