Insurance
From The Report: Ghana 2020
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After successfully weathering a period of financial instability stemming from the banking sector, Ghana’s insurance industry is growing in size and sophistication. The coming year, however, will bring a fresh set of challenges as the authorities look to roll out a new legislative framework for the industry in 2020, and as companies seek to meet the 2021 deadline for revised capital requirements. Increasing competition and lower investment returns also mean that underwriting performance is under greater scrutiny than in recent years, especially as consumer complaints against the industry rise. Insurers are responding to less favourable conditions by diversifying their distribution channels and taking advantage of mobile technology to reach previously underserved demographics. This chapter contains an interview with Justice Yaw Ofori, Commissioner, National Insurance Commission.

Articles from this Chapter

Overview

Shifting gears: A new regulatory framework and higher minimum capital requirements bring sector in line with global best practices
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After successfully weathering a period of financial instability stemming from the banking sector, Ghana’s insurance industry is growing in size and sophistication. The coming year, however, will bring a fresh set of challenges as the authorities look to roll out a new legislative framework for the industry in 2020, and as companies seek to meet the 2021 deadline for revised capital requirements. Increasing competition and lower investment returns also mean that underwriting performance…

Analysis

Healthy expansion: Major players in the life segment weigh routes to profitability
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Performance in the Ghanaian life insurance market has shown mixed results. While some providers have remained profitable despite the challenging environment caused by the crisis in the banking sector (see Banking chapter), others are struggling to achieve underwriting profitability. Those that are securing a margin are doing so with the help of high levels of investment income stemming from the country’s double-digit interest rates. A growing middle class and the recent increase of micro-insurance…

Analysis

Small packages: Micro-insurance products and services are increasing access among previously underserved populations
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Micro-insurance represents a new development path for Ghana’s insurance industry, and protecting workers and businesses from unforeseen events, such as flood or drought, is emerging as a policy priority for regional governments. Low median incomes have traditionally excluded many Ghanaians from financial services, but the emergence of the microfinance industry in the late 20th century has greatly enhanced access to an array of products and services. Financial inclusion levels in Ghana remain…

Interview

Fostering new practices: Justice Yaw Ofori, Commissioner, National Insurance Commission (NIC), on the capital requirements increase, achieving greater coverage and emerging technology
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Interview:Justice Yaw Ofori What has driven the increase in capital requirements, and how will it impact the market? JUSTICE YAW OFORI: In line with contributing more meaningfully towards the government’s agenda of developing the economy and providing more socio-economic support, the NIC decided to review the insurance market, and we realised that there was a need to revise the minimum capital requirements upwards. Risk is core to insurance, and it is key that insurance companies are solvent…

Overview

Premium protection: As the risk of data theft continues to rise, the cyberinsurance segment is poised for significant growth
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The threat of cybercrime has risen dramatically in recent years, and emerging markets are no exception. While the shift towards online platforms – along with the development of the internet of things, smart cities and blockchain technology – is generating significant opportunities for wealth creation and helping to raise efficiency, it is also creating a new set of complex challenges for governments, businesses and individuals. Cybercrime The widespread nature of cyberthreats has led to a considerable increase in the resulting cost of cybercrime. In 2015 UK bank Lloyd’s estimated that cybercrime, including direct damage and post-attack…