IMANI urges Mahama to reaffirm his 2014 directive on competitive state insurance placements

Policy think tank IMANI Africa is calling on President John Dramani Mahama to formally restate a key policy position from his first administration in 2014, which allowed public institutions to procure insurance services based on merit, value for money, and competitive capacity.

The appeal is contained in the third instalment of IMANI’s Insurance Question series, authored by IMANI associate Kay Codjoe. The analysis argues that a clear and direct clarification from the Presidency could resolve ongoing concerns about alleged political interference in Ghana’s insurance sector.

“That position must be restated, not as history, but as present policy,” the report states, warning that current ambiguity is creating uncertainty in the market and undermining established procurement principles.

The debate traces back to a directive issued on December 9, 2013, during President Mahama’s earlier administration. The directive, signed by Raymond A. Atuguba, then Executive Secretary to the President, instructed all Ministries, Departments, and Agencies (MDAs) to purchase or renew insurance policies exclusively from state-owned or partially state-owned insurers.

Under that directive, any institution seeking to engage private insurers was required to obtain prior approval from the Presidency.

Following the directive, SIC Insurance PLC moved quickly to assert its position. In a letter dated January 8, 2014, the company referenced the directive, confirmed its state-owned status, and requested insurance data from public institutions to facilitate audits and renewal planning.

However, the policy was met with strong opposition from the Ghana Insurers Association. In a petition dated January 24, 2014, signed by then-President Kwame-Gazo Agbenyadzie and addressed to the Presidency at Flagstaff House, the association argued that the directive would distort competition, discourage private investment, and potentially undermine the regulatory authority of the National Insurance Commission.

The petition warned that granting preferential access to state insurers could lead to unfair pricing, reduced efficiency in claims settlement, and limited innovation across the sector.

In response, the Presidency reversed course. On February 21, 2014, then Chief of Staff Prosper D. K. Bani issued a letter suspending the directive with immediate effect. The decision reaffirmed that MDAs were free to procure insurance from both state and private providers, provided they could demonstrate value for money.

This historical precedent—introduced, challenged, and reversed within a short period—now forms the foundation of IMANI’s current argument.

The think tank links the past to recent developments, particularly a December 11, 2025 communication from the State Interests and Governance Authority (SIGA), which instructed state-owned enterprises to prioritise SIC Insurance PLC and SIC Life for their insurance needs, and later requested compliance reports.

Concerned about the implications, IMANI founder Franklin Cudjoe formally petitioned President Mahama on March 30, 2026, during a civil society engagement at the Presidency.

The Office of the President acknowledged receipt of the petition on April 1, 2026, in a letter signed by Callistus Mahama, confirming that the matter would be brought to the President’s attention for further consideration.