Dr. Kwesi Kwabahson, the Chief Executive of the Ghana Insurers Association, has linked recent changes in insurance premiums to several macroeconomic factors, such as inflation, exchange rate fluctuations, and the effects of the 2024 Domestic Debt Exchange program.
He explained that, like other businesses, insurers are influenced by economic conditions, which play a role in determining premium pricing decisions.
Dr. Kwabahson reassured that, despite these challenges, the industry remains dedicated to delivering value and supporting its policyholders.
Without being product specific, if you take the general insurance space, for example, issues of inflation, issues of the exchange rate disparity, and then the other annual that rears its ugly head in December 2024, the domestic debt exchange rates. Don’t forget that, apart from these factors, we employ over 14,000 Ghanaians.
So we look at all these factors, and it guides us as to what kind of charges we should churn out, what we call the premium. And of course, there’s another bit called the type of risk that we are taking up because we must do an assessment, what we call underwriting, and we look at the type of risk that we are taking up. Then it informs us as to how much we can charge to be able to deal with such risk or pay the sum insured.
These are the microeconomic factors. So once you have these factors played, definitely it affects our ability to produce, or we talk about increment.
