Insurance
From The Report: Ghana 2018
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The Ghanaian insurance industry has experienced a decade of rapid growth, and the proliferation of private companies and brokers. Government efforts to strengthen the financial sector and new leadership at the National Insurance Commission, the industry regulator, contributed to rising optimism in late 2017. The regulator and the government are aiming to increase insurance penetration to 10% of GDP. The growth of new business lines such as bancassurance, micro-insurance and mobile insurance should help bring this target into reach, although there is still ample progress to be made.

This chapter contains interviews with Justice Yaw Ofori, Commissioner, National Insurance Commission; and Aaron Issa Anafure, Former CEO, SIC Life Insurance.

Articles from this Chapter

Overview

Guiding progress: Targeting double-digit penetration by 2021
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Since the enactment of the 2006 Insurance Act, which promoted the development of local content requirements, the Ghanaian insurance industry has experienced a decade of rapid growth, and the proliferation of private companies and brokers. However, following the influx of foreign capital on the back of oil and gas production, the size of the sector in relation to the broader economy has diminished. Prior to the development of hydrocarbons projects, insurance premiums looked set to breach…

Analysis

Consolidated statement: Encouraging mergers to create risk resilience and international competitiveness
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The proliferation of insurance companies in Ghana in recent years is indicative of the growth potential of the industry, but has also hindered its maturation. As with many financial sectors in Africa’s frontier markets, fragmentation has limited growth. Larger, heavily capitalised companies are needed to take on the scale of risk inherent in the country’s major energy, mining, industry and infrastructure projects. Stronger insurers would also have the capacity to train and specialise…

Interview

Committed to improvement: Justice Yaw Ofori, Commissioner, National Insurance Commission (NIC), on growth potential in the sector
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Interview: Justice Yaw Ofori How can the overall contribution of insurance to Ghana’s GDP be increased? JUSTICE YAW OFORI: Insurance has enormous growth potential. As a regulator, the NIC is heavily involved in researching, designing and implementing best practice in order to generate more trust in the sector and establishing clear rules. Achieving the goal of increased penetration and bringing it into double digits is also fundamental. Our key focus areas in order to achieve this will be promoting…

Interview

Improving uptake: Aaron Issa Anafure, Former CEO, SIC Life Insurance, on the potential for higher demand and consolidation
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Interview: Aaron Issa Anafure What are the biggest challenges facing the sector? AARON ISSA ANAFURE: The main obstacle to sustained growth is a lack of awareness of the benefits and long-term value of insurance products. For many players this has translated into difficulties related to liquidity, the pace of development of new products and business generation. Much more could be done to by using the existing institutional framework as part of a comprehensive communication campaign. A positive…

Analysis

Phone lines: Using mobile products to access untapped markets
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In recent years the most promising growth in the insurance industry has come from the low- to middle-income brackets via micro-insurance, which targets entities with lower-level earnings. According to a 2015 report from the National Insurance Commission and the German development organisation GIZ, gross micro-insurance premiums grew by 185% between in 2012-14 to GHS13.3m ($5m). Additionally, the study revealed that in 2014 around 7.5m lives or properties were covered by a form of micro-insurance,…