Total assets of the domestic insurance industry experienced a substantial rise from GHȼ5.4billion in 2017 to GHȼ15.1billion by end-2023.
Parallel to growth in assets, the sector’s total Gross Written Premium (GWP) has surged – nearly quadrupling from GHȼ2.4billion in 2017 to GHȼ8.1billion by 2023.
This significant increase in GWP somewhat reflects a strengthened confidence in the insurance market and an expansion in variety and reach of insurance products available to Ghanaians.
President Nana Akufo-Addo disclosed this and added that even though insurance penetration remains at 1 percent, insurance coverage – which measures the percentage of population covered by insurance – grew from 29 percent in 2016 to 44 percent as of 2022.
“Total Gross Written Premium of the insurance industry quadrupled from GH¢2.4billion in 2017 to GH¢8.1 billion in 2023. The total assets of the industry grew from GH¢5.4billion in 2017 to GH¢15.1billion as of the end of 2023,” President Akufo-Addo stated in a statement read on his behalf by the Chief of Staff, Akosua Frema Osei-Opare at an event to celebrate Enterprise Insurance’s 100th anniversary.
President Akufo-Addo also underscores government’s role in creating a business environment that is conducive to private sector growth.
“A key component of that conducive environment is an insurance industry which is robust and fit-for-purpose. It is for this reason that since 2017 significant steps have been taken to improve and strengthen the insurance sector. A new insurance act, Insurance Act 2021 (Act 1061), has been passed to give the regulator more effective supervisory powers to ensure a stable and financially resilient insurance industry.
“The new Act is also expected to engender growth and deployment of innovation as well as improve inclusivity. New minimum capital requirements have also been implemented to ensure our insurance companies have the required capacity and resources to be effective and underwrite high ticket businesses and optimise their retention,” he added.
With a significant portion of Ghanaians working in the informal sector, the president encouraged insurance industry players to champion products that cater for the financially excluded and underserved – including micro and small business enterprises.
He further emphasised the importance of providing suitable and affordable agricultural insurance services to support both commercial and smallholder farmers.
He noted that the country’s growing economy will increase the demand for innovative and inclusive insurance solutions. As such, he encouraged players to embrace new technologies and develop solutions that meet the evolving needs of communities.
B&FT