Insurance
From The Report: Ghana 2016
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Growing at one of the fastest rates in Africa, Ghana’s insurance sector continues to do well despite the headwinds faced by the overall economy. Analysts and market participants are expecting years of solid performance as awareness, penetration and density increase and converge towards global averages. Companies in the sector are reporting strong profits and good premium growth, while interest is high from international investors, with 2014 and 2015 characterised by a series of major transactions. Insurance in Ghana is set for continued growth, mergers and acquisitions, and improved coverage, and the country is likely to be one of the better performing markets in the region.

This chapter includes an interview with Ivan Avereyireh, President, Ghana Insurance Association (GIA).

Articles from this Chapter

Overview

Star performer, big challenges: The regulator and providers are tackling obstacles to growth
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Growing at one of the fastest rates in Africa, Ghana’s insurance sector continues to do well despite the headwinds faced by the overall economy. Analysts and market participants are expecting years of solid performance as awareness, penetration and density increase toward global averages. Companies in the sector are reporting strong profits and good premium growth, while interest is high from international investors, with 2014 and 2015 characterised by a series of major transactions. Regulation…

Analysis

Capital growth: New rules are set to make the sector stronger and better prepared for risk
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Capital requirements for domestic insurers have been increased over a number of years. Minimum levels were set in the Insurance Law of 1989, and since then a series of adjustments have been made to strengthen balance sheets and account for changes in global standards. Capital requirements have also been hiked to encourage the merger of smaller insurances firms and support the overall consolidation of the sector. Over time, the changes instituted have in part had the desired effect, with higher capital…

Interview

Increasing awareness: OBG talks to Ivan Avereyireh, President, Ghana Insurance Association (GIA)
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Interview:Ivan Avereyireh What do you see being the major drivers of growth in the insurance sector in the next few years? IVAN AVEREYIREH: Life insurance will be the major driver of sector growth in the medium term. Life has been the fastest-growing segment of the sector and we believe that this trend will continue. Culturally, plans such as funeral and education policies are very popular. Policies catering to the less affluent segments of the population have grown in popularity, specifically…

Analysis

Take it to the bank: Financial institutions may be the key to improving insurance penetration
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Bancassurance is a booming business in Ghana. The insurers and banks are actively teaming up in partnerships to offer a wide range of competitive and innovative products. Meanwhile, the regulator has been supporting this distribution method and remains positive that it could help the country to improve penetration and density. Some questions have been raised about these arrangements, however, and there are concerns that the relationships can lead to potential problems, but bancassurance is likely…

Analysis

The micro push: New polices are expanding options for the uninsured
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Great strides have been made in Ghana in recent years in terms of promoting microinsurance by developing a framework for the segment and introducing new delivery mechanisms. Insurers have eagerly begun to offer new products that will help rural and low-income customers access cover. The country has set a strong foundation for increasing inclusiveness and getting penetration above the current rate of about 2%. More regulation is needed in order to ensure consumers have adequate protection and further…

Analysis

Call the doctor: The national health system is under strain as the government works on solving financial challenges
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Designed to provide a basic level of health care coverage for everyone in the country, the Ghana National Health Insurance Scheme (NHIS) is an ambitious programme. It has been in place since 2003 and has helped many receive insurance protection that they would not otherwise have been able to afford. For the average Ghanaian, the scheme is often the first introduction to risk coverage and is helping to increase awareness and acceptance of insurance. History For a time following independence, the…

Analysis

Great promise: Shifting demographics and reforms spell growth potential
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Social safety nets in many of Africa’s economies are thin. A large informal sector, combined with inefficient administration of universal pension schemes, has limited income support from pensions. Pensions themselves have suffered from stringent portfolio allocation rules and shallow capital markets, which constrain their ability to invest in productive assets. However, given the population of Africa is more than 1bn people, the continent’s pension fund industry holds significant potential.…