Life Insurance in Ghana to reach 1.6 bn

Ghana’s life insurance market is expected to double by 2019 from GHC584.5 million ($224.8 million) in 2014 to GHC1.6 billion ($461.6 million).

Although the life segment’s share is anticipated to increase over the next four years, the non-life segment’s share, on the other hand, is expected to decline from 45.4 percent to 39.7 percent, followed by the personal accident and health segment’s share which is set to decline from 7.4 percent to 6.1 percent in 2019.

This was contained in Timetric’s Insurance Intelligence Center (IIC) new report.

The report said life insurance market in Ghana performed well over the last few years, with the life gross written premium rising from GHC187 million in 2010 to GHC584.5 million in 2014.

The growth is as a result of expansion in the middle-class population, along with the introduction of micro-insurance products in the life and personal accident and health segments through telecommunication companies, it said.

“Micro-insurers collaborate with mobile networks to reduce transaction costs and make products affordable to low-income buyers. This also helps insurers to collect premiums and settle claims through mobile wallets,” said Jay Patel, Insurance Analyst at Timetric.

According to the Timetric research, mobile phone subscriptions indicate potential for mobile-driven insurance services in the country.

“The number of mobile phone subscriptions in Ghana grew annually by 20 percent in 2014 to reach 25.6 million. This indicates potential for mobile-driven services in the country and developing mobile products for the low-income populations in rural areas will drive the industry over the forecast period,” the report said.

Rising foreign participation is also expected to lead to more innovative products for rural buyers, driving the life segment over the forecast period, Mr Patel said.

About Timetric

Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors.

It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary.