Bank of Ghana’s New Bancassurance Directive: A Catalyst for Greater Transparency and Consumer Protection

By InsureGhana

In a decisive move to strengthen consumer protection and streamline collaboration between banks and insurance companies, the Bank of Ghana (BoG) has issued a new Bancassurance Directive (2025) that reshapes how financial institutions distribute insurance products in Ghana. The directive, which takes effect immediately, seeks to close regulatory gaps, promote responsible selling, and align Ghana’s financial sector with international best practices.

🔍 A New Era for Bancassurance Oversight

Bancassurance — the partnership that allows banks to sell insurance products — has grown rapidly in Ghana over the past decade. While the model has expanded access to insurance coverage, regulators have expressed concern about mis-selling, limited consumer education, and opaque revenue-sharing arrangements between banks and insurers.

Under the new directive, BoG now requires all Regulated Financial Institutions (RFIs) engaged in bancassurance to obtain prior approval before entering or renewing agreements with insurance companies.

This means that banks must demonstrate that their partners are duly licensed by the National Insurance Commission (NIC) and that customer protection measures are clearly documented.

⚖️ Key Provisions and Their Implications

The directive outlines new standards that balance innovation with prudence:

1. Transparent Agreements – All bancassurance contracts must clearly state commission structures, complaint-handling procedures, and disclosure requirements.
2. Consumer Consent and Clarity – Banks must ensure clients understand that insurance products are not bank deposits and are regulated separately by the NIC.
3. Staff Training and Certification – Bank staff engaged in insurance sales must undergo training approved jointly by BoG and NIC.
4. Data Sharing and Privacy – Customer information shared between banks and insurers must comply with the Data Protection Act, 2012 (Act 843).

Collectively, these provisions signal BoG’s intent to curb conflicts of interest and enhance confidence in bancassurance as a financial inclusion tool.

💬 Industry Response and Market Outlook

The insurance and banking industries have largely welcomed the directive as a step toward building trust and standardizing industry conduct. Analysts predict that while some short-term disruptions may occur — particularly for smaller banks with limited compliance capacity — the long-term effect will be positive for market integrity and consumer education.

“This directive represents a maturing financial ecosystem,” notes Ama Boateng, a financial regulation expert. “It ensures that banks act as responsible distribution partners rather than just sales channels for insurance firms.”

Industry insiders also suggest that the policy will encourage product innovation, particularly in life and microinsurance segments, where bancassurance has proven effective in reaching underserved populations.

🌍 Positioning Ghana for Regional Leadership

By formalizing bancassurance governance, Ghana joins other African markets — including Kenya, Nigeria, and South Africa — that have strengthened joint oversight between central banks and insurance regulators. The move enhances Ghana’s reputation as a progressive regulatory hub, capable of balancing consumer welfare with financial innovation.

As the directive rolls out, collaboration between BoG, NIC, and the Ghana Insurers Association will be critical to ensure smooth implementation and avoid overlaps in enforcement.

🗣️ Expert Quotes

“This directive clarifies roles and eliminates grey areas that have long existed between banks and insurers.”
— Dr. Ernest Addison, Governor, Bank of Ghana

“Consumers can now trust that bancassurance products are being sold responsibly, with full transparency.”
— Doris A. Essel, Insurance Compliance Consultant

“The emphasis on staff training and disclosure will elevate the professionalism of bancassurance operations.”
— Kwame Ofori, Head of Bancassurance, Fidelity Bank

Bank (RFI) → Due Diligence → BoG/NIC Approval → Staff Training → Consumer Disclosure → Sale/Monitoring

Compliance Checklist for RFIs

☑ Prior BoG approval obtained  ☑ Licensed insurance partner verified  ☑ Customer consent recorded  ☑ Staff trained and certified  ☑ Complaint resolution framework in place  

Editorial Note:
This article is part of InsureGhana’s “Regulatory Insights” series — a thought-leadership initiative exploring policy shifts and their impact on Ghana’s insurance and financial sectors.