IMANI flags procurement issues in Ghana Gas insurance switch

Policy think tank IMANI Africa has raised serious legal and procurement concerns over recent changes to insurance arrangements at the Ghana National Gas Company, cautioning that disruptions to an existing structured insurance programme could have significant implications for international reinsurance markets.

The concerns are detailed in the second instalment of IMANI’s Insurance Question series, which identifies the Ghana Gas case as being “at the centre of this dispute” within the broader debate over insurance placement practices in Ghana.

According to submissions made by GLICO General Insurance Ltd to the Presidency, the firm had successfully arranged a structured insurance programme for Ghana Gas that included participation from A-rated international reinsurers, particularly within the London market—one of the world’s leading hubs for complex risk underwriting.

GLICO indicated that it had secured a two-year, locked-in reinsurance structure with favourable pricing negotiated at the international level. However, its role as lead insurer was terminated effective December 31, 2025, with a different insurer taking over responsibility from January 1, 2026.

IMANI’s analysis raises three critical questions regarding this transition. First, whether the change was conducted through a transparent and competitive procurement process. Second, whether existing contractual obligations were properly reviewed and lawfully terminated. Third, whether the potential consequences for international reinsurance commitments were adequately assessed prior to the decision.

“Once reinsurance capacity is allocated, it is not easily reversed,” the report states, emphasizing that such arrangements are typically priced, committed, and backed by financial institutions and balance sheets outside Ghana.

The think tank warned that unilateral disruptions to such structured programmes could have systemic consequences. These may include damage to Ghana’s credibility in international insurance and reinsurance markets, increased future risk pricing, reduced access to global reinsurance capacity, and higher long-term costs associated with insuring critical national infrastructure.

“This is not theoretical risk,” the analysis stressed. “It is how global insurance systems operate.”

In addition to procurement concerns, IMANI also highlighted potential regulatory issues arising from the situation. The petition by GLICO raises questions about third-party involvement in reinsurance negotiations—particularly where entities with regulatory or quasi-regulatory authority may also have competing commercial interests in the same market.

IMANI cautioned that if such engagements occurred without the knowledge or approval of the insurer of record, they could conflict with provisions of the Insurance Act, 2021 (Act 1061). These provisions govern authorised placement structures, regulatory oversight, and standards of market conduct within Ghana’s insurance industry.

“At that point, the issue is no longer commercial. It becomes regulatory,” the report noted. “And when regulatory boundaries begin to blur, confidence begins to weaken.”

The think tank further underscored the strategic importance of Ghana Gas, describing it as a critical national asset with complex operational risks. These include gas processing infrastructure, pipeline systems, industrial installations, and third-party liabilities—risks that typically require detailed risk engineering, structured underwriting, and multi-year insurance commitments.

IMANI argued that such complex risk profiles cannot be effectively managed through abrupt administrative changes, but rather demand carefully structured, long-term insurance arrangements aligned with global best practices.