Motor insurance premiums likely to increase by 30% from January 2024 – Insurers Association

Beginning January 2024, the cost of Motor Insurance Premiums in Ghana are likely to go up by more than 30 percent.

This is the indication given by the Chief Executive of the Ghana Insurers Association, Dr. Kingsley Kwesi Kwabahson, who attributed the potential increment on government's decision to impose a VAT rate on Non-Life Insurance products by about 21 percent.

This is further exacerbated by the expected increase of Motor Insurance Premiums by at least 10 percent.

Dr. Kingsley Kwesi Kwabahson made this known while speaking on the JoyNews PM Express Business Edition and monitored by GhanaWeb Business, on December 14, 2023.

"We are still engaging with stakeholders and what I can give at the moment is scenarios but I will not dog-tail on the details. For example if you look at 10% increment for example, plus VAT take its to 31%...15 percent increment means plus 21 VAT and that makes about 36%.

"...So that is why we having a stakeholder engagement to ensure that whatever is charged will be equitable and makes business sense," Dr. Kwabahson emphasized.

Motor Insurance Premiums are expected to be increased by more than 30 percent from January 2024. @Joy997FM @JoyNewsOnTV #joysms

— George Wiafe (@gwiafe) December 15, 2023

Chief Executive of the Ghana Insurers Association Dr. Kingsley Kwesi Kwabahson disclosed this on PM EXPRESS BUSINESS EDITION on 14th December 2023.

— George Wiafe (@gwiafe) December 15, 2023