Business

GHANA’S INSURANCE PENETRATION RATE FALLS FROM 1 PERCENT TO 1.12 PERCENT

The country’s Insurance penetration rate has dropped to 1 percent from the previous rate of 1.12 percent, the 2018 report of the National Insurance Commission has revealed.

The new rate includes both life and nonlife insurance.

The decline of insurance penetration rate last year was witnessed despite the 21 percent growth in the industry’s gross written premiums. The NIC has blamed the reduction in the figures to the rebasing of the economy.

According to NIC’s 2018 report on the insurance industry, only 30 percent of Ghanaians have insurance cover.

The report also 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 in 2018 as revealed by the NIC, 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 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.

Together, the insurance companies made a profit of GH¢202 million.

Total premiums in 2018 stood at GH¢2.9 billion. There are over 30, insurance companies currently operating in the country. The industry employs some 12,000 people.

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