Insurance penetration in Ghana remained stagnant at 1.0% in 2024, matching the level recorded in 2023, according to the 2024 Financial Stability Review. When measured by the Insurance Service Revenue metric under IFRS 17 standards, penetration was even lower at 0.63%. Despite this, the report highlights the potential for growth through digitalisation, innovative insurance products, inclusive schemes, and enhanced public education.
Meanwhile, insurance density — the average insurance spend per capita — saw a modest increase, rising to GH₵202.40 in 2024 from GH₵195 in 2023. This suggests larger policy sizes or improved disposable incomes, reflecting a slight easing of economic pressures on households and businesses.
The life insurance sector demonstrated strong retention of premiums at 96.36%, indicating effective asset-liability management and investment practices safeguarding policyholders’ funds. Non-life insurance retention also improved to 73% from 69% the previous year, signaling better utilization of local capacity and a potential to reduce reliance on foreign reinsurance.
However, the industry’s dependence on overseas reinsurance increased, with the National Insurance Commission approving GH₵814 million in reinsurance premiums for 2024, up from GH₵656 million in 2023. This reflects ongoing constraints in local underwriting capacity and a growing need for foreign risk diversification.
While offshore reinsurance helps spread risks, it also introduces vulnerabilities to currency fluctuations and capital outflows, which could increase liquidity pressures in the insurance sector if exchange rate volatility worsens. The report underscores the need for strategic measures to strengthen local capacity and boost sustainable growth in Ghana’s insurance industry.
Source: Citi newsroom