Microinsurance Delivers GH¢8.4m Relief to Kantamanto Traders, Redefining Risk Protection in Ghana

A GH¢8.4 million payout through microinsurance schemes has become a turning point for Kantamanto traders, many of whom have long operated without safety nets in Ghana’s volatile informal economy. The lifeline, triggered by recent market disruptions, underscores the transformative role of microinsurance in providing financial resilience for low-income entrepreneurs. As trust in traditional institutions remains shaky, this grassroots insurance model is rapidly gaining traction—offering a replicable blueprint for protecting livelihoods in underserved markets while expanding financial inclusion across the country.

A strategic insurance collaboration involving Advans Ghana, Turaco Inclusive Ghana (T/A Turaco), and Enterprise Insurance has delivered GH¢8.4 million in financial support to 227 small and medium enterprise (SME) traders affected by the recent Kantamanto Market fire.

The payout, which covered outstanding loan obligations and provided emergency cash for business recovery, is being hailed as a benchmark for SME protection and resilience financing in Ghana.

The initiative, which dates back to 2010, is built around an embedded microinsurance model designed to provide inclusive financial protection to low-income entrepreneurs. With over 200,000 clients insured through this partnership, the Kantamanto fire presented a critical test—and the payout has proven the model’s real-world value.

Guillaume Valence, CEO of Advans Ghana, emphasized the commercial rationale behind the integration of insurance into their financial services. “Embedding insurance into our loan products is a strategic decision aimed at ensuring business continuity for our clients. The Kantamanto payout underlines how building financial buffers through microinsurance safeguards not just individual businesses but our overall loan portfolio.”

Advans Ghana, a subsidiary of the global Advans Group, currently serves more than 130,000 clients in Ghana, with a focus on micro, small, and medium-sized businesses. The company’s approach integrates risk mitigation tools into its lending framework, positioning it as a resilient and client-focused lender.

Turaco, a rapidly growing insurtech with operations in Ghana, Nigeria, Kenya, and Uganda, acts as the insurance technology and distribution partner in the model. Leona Abban, General Manager of Turaco Ghana, described the payout as a validation of their customer-centric and technology-driven insurance distribution model.

“This is a textbook case of how embedded insurance creates real impact. Through automated claims processing and seamless integration with Advans Ghana’s systems, we were able to respond to the needs of traders within days. For the business community, this sets a precedent on the role of microinsurance in enterprise risk management.”

The insurance policy is underwritten by Enterprise Insurance, Ghana’s oldest and highest-rated insurance company. According to Akosua Ansah-Antwi, Managing Director of Enterprise Insurance, the success of the Kantamanto intervention highlights the need for strong underwriting partnerships that respond to the dynamics of the informal sector.

“At Enterprise Insurance, we prioritize solutions that respond directly to customer realities. Supporting this model aligns with our business objective of expanding coverage to underserved markets while maintaining underwriting discipline.”

The payout was not limited to loan clearance. Advans Ghana has also provided GH¢20,000 worth of building materials to aid in the physical rebuilding of market stalls. In addition, selected clients were offered a Restart Offer featuring a temporary payment grace period and a 10 percent interest rate reduction—an approach designed to ensure sustainable recovery and preserve long-term client value.

Regulatory authorities have also endorsed the initiative. Bernard Ohemeng-Baah, Deputy Commissioner of the National Insurance Commission (NIC), described the payout as a demonstration of how inclusive insurance can support macroeconomic stability by protecting SMEs, which employ millions of Ghanaians.

“As a regulator, we are encouraged by the strategic alignment of this initiative with Ghana’s financial inclusion agenda. It is proof that inclusive insurance can be both commercially viable and socially impactful,” he noted.

With micro, small, and informal businesses accounting for a significant portion of Ghana’s GDP and employment, the Kantamanto case is increasingly seen as a model worth replicating. The success of the intervention offers a compelling case for embedding insurance within SME financing structures to de-risk lending, reduce default risk, and improve economic recovery outcomes after shocks.

Turaco’s digital-first approach and low-cost insurance premiums—as low as US$1 per month—position it as a scalable player in delivering protection at scale. The company leverages API integrations and AI-powered claims processing to reduce cost-to-serve and accelerate payouts.

Enterprise Insurance, established in 1924, remains a dominant player in Ghana’s insurance landscape with a robust balance sheet and AAA credit rating from Global Credit Rating of South Africa. The company’s commitment to underwriting innovation has allowed it to play a leading role in extending insurance to informal sector actors, traditionally overlooked by conventional models.

The Advans-Turaco-Enterprise Insurance model has emerged as a resilient financing solution, effectively de-risking credit portfolios while safeguarding livelihoods. It demonstrates that financial services tailored to SME realities can be both sustainable and transformative.

Last Updated on May 6, 2025 by samboad