Ghana’s markets remain dangerously exposed to fires and other disasters despite available insurance options, with inadequate planning and infrastructure creating risks that undermine trader protection, according to the country’s leading insurance professional.
Solomon Amah-Kai Lartey, President of The Chartered Insurance Institute of Ghana, argues that insurance coverage alone cannot safeguard traders without proper market design, clear access routes, and comprehensive risk management systems in place from the beginning.
Most Ghanaian markets suffer from structural problems that make them high-risk environments for both traders and insurers. Narrow passages, mixed storage of flammable and non-flammable goods, and poorly organized stall arrangements create conditions where disasters can spread rapidly with devastating consequences.
Lartey points to the absence of emergency access routes in most markets, warning that inadequate planning makes entire sections vulnerable when fires break out. The lack of proper demarcation also means traders set up anywhere, often creating hazardous combinations of incompatible products and blocking escape routes.
These infrastructure failures discourage insurance companies from offering comprehensive coverage, leaving traders exposed to severe financial losses when disasters strike. A single fire can destroy the life savings of dozens of market vendors who lack adequate protection for their goods and structures.
The insurance executive advocates for involving insurers and risk management professionals during the initial planning stages of new markets. This approach ensures layouts meet underwriting standards and can support reliable insurance coverage from the outset.
For Ghana’s existing markets, microinsurance solutions offer immediate protection options. These targeted products allow individual traders to insure their specific goods or structures while district assemblies work with consultants to develop broader, standardized insurance policies across entire market complexes.
Graduated premium structures make insurance accessible even for small-scale traders, reducing overall market risk while providing meaningful financial protection. When markets incorporate proper planning and risk management, insurance companies can process claims with confidence because necessary underwriting requirements have been met.
Beyond financial security, properly insured markets encourage more orderly operations and create safer trading environments. Emergency response becomes faster and more effective when markets have appropriate access routes and clear organizational structures.
Lartey envisions Ghana’s markets operating as secure, sustainable trading hubs that protect both traders and local economies. However, this transformation requires integrating insurance considerations and safety measures into every aspect of market planning and ongoing operations.
