NIC to leverage ‘susu’ model to drive insurance uptake in informal sector

By Elizabeth PUNSU, Kumasi

The National Insurance Commission (NIC) is exploring ways to build insurance products around the informal sector’s traditional “susu” and welfare systems as part of efforts to deepen insurance penetration across the country.

Commissioner of Insurance Dr. Abiba Zakaria has revealed that the commission is engaging transport operators, among other informal workers, to better understand the sector’s long-established collective savings and support schemes, with the aim of developing insurance solutions that complement and strengthen them.

The initiative forms part of a broader strategy to increase insurance uptake among informal sector workers, who make up the bulk of the country’s workforce but remain largely uninsured.

Dr. Zakaria, in an interview with the B&FT, noted that many Ghanaians currently purchase insurance only because it is mandatory or tied to formal employment. She, however, emphasised that the NIC wants to create a culture in which individuals voluntarily seek insurance protection because they understand its benefits.

“We are starting with the transport sector because it already has established welfare and susu structures. These arrangements function as a form of collective support where members contribute regularly and receive assistance during difficult times,” she explained.

She expressed belief that such community-based systems provide a strong foundation upon which insurance products can be designed and delivered.

“We want to understand these structures better and develop insurance solutions around them together with the operators. The goal is to create products that people trust because they are built around systems they already know and use,” Dr. Zakaria said.

By leveraging familiar contribution-based models similar to crowd-funding and mutual support schemes, insurers may be able to reach millions of workers who have traditionally been excluded from formal financial protection mechanisms.

Beyond expanding access to insurance, the commissioner highlighted technology and innovation as key pillars of the industry’s growth strategy.

She disclosed that the NIC is collaborating with the financial sector, under the leadership of the Bank of Ghana, to strengthen resilience against cyber fraud and emerging digital risks.

“The commission has also continued to enhance the Motor Insurance Database, which was introduced to improve transparency, strengthen enforcement and reduce fraud within the motor insurance market,” Dr. Zakaria added.

The commissioner said these initiatives collectively form part of the NIC’s broader agenda to build a more inclusive insurance sector that responds to the needs of all, particularly those operating outside the formal economy.

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