Report says Ghana’s insurance penetration rate dropped to 1 percent in 2018

The National Insurance Commission (NIC) in Ghana report has shown that the country’s Insurance Penetration rate dropped to 1 percent in 2018 from the initial 1.12 percent recorded in 2017.

Justice Yaw Ofori, is the Commissioner of the National Insurance Commission

The new rate includes both life and nonlife insurance.

The NIC said this in its 2018 report it released.

Despite the 21 percent growth in the industry’s gross written premiums, the report said it (the industry) still recorded a decline. It hence blamed the reduction in the figures to the rebasing of the economy.

According to the report, only 30 percent of Ghanaians have insurance cover.

It further revealed that 28 Non-life insurance companies, 2 life insurance companies, 23 insurance brokers were sanctioned for various infractions in 2018.

On complaints, a total of 1,069 complaints were made to the NIC on both life and nonlife insurance, this is more than 200 percent increase of the 291 complaints recorded in 2017.

Also, two insurance companies, Beige Life Assure and Esich life were placed under enforcement. While African Life Insurance Limited and Avance Life Insurance Company voluntarily suspended their operations.

On claim payment, the report noted that GH¢1.1 million is paid daily by insurance companies as claims for Non-life insurance while Ghc1.9 million is paid for life insurance claims every day.

Total assets of the Insurance industry currently standards at GH¢6.2 billion with the life insurance sector having GH¢3.1 billion, the nonlife sector follows with GH¢2.4 billion and Reinsurance with GH¢0.7 billion.

Currently, there are over 30, insurance companies currently operating in the country. The industry employs some 12,000 people.

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