Broker suggests option to insure informal businesses

Traders at the Kumasi Central Market would need to jointly approach a consortium of insurers to minimize the risk of perennial fire disasters at the site.

Victims of last week’s fire disaster at the market are presently relying on friends and relatives to get back to business. They are mobilizing resources to reconstruct their shops pending any assistance from government.

But an insurance broker believes something can work to indemnify victims, whilst issues of proper market planning are being considered.

The issue of insurance often comes up whenever such disasters occur at the Kumasi central market as the traders lose goods and cash running into thousands of Ghana cedis.

Luv FM found out many of the traders subscribe to the national health insurance and other life assurance policies. Insuring their businesses is however a challenge.

Apparently, insurance companies often shy away from insuring the sector due to the high risk factor and low premium payment for fire policy.

Charles Bennin, the Head of Business Development, Marketing and Research at KEK Insurance Brokers told Luv FM that a consortium of insurers may opt to insure the traders if they collectively agree to indemnify their operations.

“No insurer would want to take up the risk because one fire outbreak can run through more than five stalls and the premium for fire is ridiculously low. So if they receive adequate premium and a lot of people join the pool, the insurance companies can easily pay claims or indemnify victims”, Mr. Bennin noted.

by Kofi Adu Domfeh

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