The introduction of Value Added Tax (VAT) on insurance products has emerged as a major setback for Ghana’s insurance broking industry, slowing policy uptake and reducing business volumes for brokers, the outgoing President of the Insurance Brokers Association of Ghana (IBAG), Shaibu Ali, has revealed.
Speaking on the sidelines of IBAG’s Annual General Meeting (AGM), Mr. Ali, who is also the Managing Director of Kek Insurance Brokers, described 2025 as a challenging yet progressive year for the sector.
“The 22 per cent VAT affected the policies people took and significantly impacted the numbers of most brokers. That was one of the major low points for the industry,” he stated.
According to Mr. Ali, the imposition of VAT on insurance products not only made policies more expensive for consumers but also slowed the momentum of insurance penetration, particularly among individuals and small businesses who are most price-sensitive.
Many brokers reportedly experienced a decline in new business and renewals, affecting overall industry growth.
Despite the challenges, Mr. Ali highlighted several achievements for IBAG in 2025.
The association recorded membership growth, acquired a permanent office property at Kanda, and established the Ghana Insurance Industry Credit Union.
The credit union has grown to over 400 shareholders and amassed assets of approximately GH¢1.6 million, reflecting strong uptake and confidence among members.
The outgoing President also noted the industry’s international exposure initiatives, including a delegation of 17 Ghanaian brokers to Dubai to engage with Middle Eastern counterparts. This followed a previous initiative three years ago that saw 65 brokers travel to London to explore international markets.
Assessing the year, Mr. Ali said: “It is difficult to categorise 2025 as either good or bad. Many brokers experienced a decline in business due to VAT, but the industry collectively recorded meaningful progress.”
Looking ahead to 2026, Mr. Ali expressed optimism that businesses would budget more effectively for VAT, which should stabilise insurance activity and help brokers adjust their pricing strategies.
He also expressed confidence that IBAG would continue to attract new members.
On the issue of public trust in insurance, Mr. Ali acknowledged historical challenges but pointed to significant improvements in regulation and claims settlement.
He urged consumers to purchase insurance through licensed brokers, emphasising that brokers are better positioned to protect clients’ interests and ensure proper policy administration.
Institutions such as the National Insurance Commission (NIC) and the Ghana Insurance Association have implemented effective complaint resolution mechanisms, reducing the risk of unpaid claims and enhancing consumer confidence.
IBAG also continues to observe Broker Awareness Month every October, using media and public outreach to educate the public about insurance broking and address misconceptions.
The AGM also saw the election of a new executive council to lead the association into the next phase.
Stephen Kwarteng Yeboah was unanimously elected President with 58 votes, while Bianca Noshie secured the Vice-President role with 57 votes.
Philip Atinga emerged as Treasurer, Kofi Akoto won the General Secretary post with 31 votes, and Shiela Wristberg and Leticia Baidoo were elected Assistant Secretary and Assistant Treasurer, respectively.
