Brokerage income rises

The number of insurance broking firms licensed to operate in the country in 2011 has increased from 45 to 54. Five new companies were licensed in 2011, including a reinsurance broker and a loss adjuster.

Financial performance of the companies also improved by 22.1%, from GH¢16.9million earned as brokerage income in 2010 to GH¢20.6million in 2011. However, the rate of growth in earnings has seen a downward trend since 2007. Earnings are picking up as individual companies put in a lot of effort.

Earnings of the top-10 companies improved from GH¢11.9million to GH¢14.1million; controlling about 68.4% of total income earned in the year under review.

More importantly, companies licensed in the 2000’s are indeed waxing strong – for example brokerage firms such as Shield Insurance Brokers, First Anchor, Insurance Solutions, Midas, Risk Management and Advisory Services (RMAS).

For instance, RMAS started operations barely a year ago but is performing better than some of the older established companies.