<\/p>\n
According to Hollard Insurance Ghana Managing Director Daniel Boi Addo, Micro, Small, and Medium Enterprises (MSMEs) account for about 92% of businesses, contribute roughly 70% of gross domestic product, and provide around 85% of manufacturing employment. Beyond the figures, they support livelihoods and drive inclusive growth, particularly for women, youth and rural communities.<\/p>\n
<\/p>\n
However, many operate without adequate protection. Boi Addo said the biggest threat facing these businesses is their inability to recover from unexpected events. \u201cThe biggest threat is their inability to recover from unexpected events,\u201d he said.<\/p>\n
<\/p>\n
Risks such as fires, floods, theft and climate-related events frequently disrupt operations. In many cases, businesses fail to recover due to a lack of insurance and financial buffers.<\/p>\n
<\/p>\n
Despite the risks, insurance penetration among MSMEs remains low. Boi Addo attributed this to several factors, including limited awareness, lack of education and weak engagement from the insurance industry. \u201cEducation is a big reason a lot of these businesses have never had a conversation about insurance,\u201d he said.<\/p>\n
<\/p>\n
Other challenges include informal operations, poor risk management, limited business planning and restricted access to finance. These factors make it difficult for businesses to meet requirements for insurance and credit.<\/p>\n
<\/p>\n
Boi Addo said improving adoption will require a shift in how insurance products are designed and delivered. He highlighted three key areas: relevance, affordability and accessibility.<\/p>\n
<\/p>\n
Simplifying policies, improving claims processes and lowering costs will be critical to building trust and encouraging uptake. He also emphasised the need for insurers to reach businesses directly. \u201cThe channel that works most effectively is people going out to have conversations with MSMEs,\u201d he said.<\/p>\n
<\/p>\n
At a minimum, Boi Addo said small businesses should consider essential policies, including fire cover, theft protection, liability insurance and business interruption cover, to protect income and operations. Without such protection, disruptions can lead to layoffs and permanent closure.<\/p>\n
<\/p>\n
While funeral insurance remains relatively popular, broader insurance uptake among MSMEs is still limited. Boi Addo said strengthening risk protection is essential to supporting long-term sustainability. \u201cWhen we support MSMEs, we are supporting jobs, families and the future of Ghana\u2019s economy,\u201d he said.<\/p>\n
<\/p>\n
–ChannelAfrica–<\/p>\n
<\/p>\n","protected":false},"featured_media":38193,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-38192","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Small businesses and informal enterprises remain a cornerstone of Ghana\u2019s economy, but limited insurance coverage continues to expose many to significant risks.","published_date":"","news_description":"Small businesses and informal enterprises remain a cornerstone of Ghana\u2019s economy, but limited insurance coverage continues to expose many to significant risks.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/38192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/38192\/revisions"}],"predecessor-version":[{"id":38194,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/38192\/revisions\/38194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/38193"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=38192"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=38192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}