Insurances

The Insurances market in Ghana is projected to reach a market size (gross written premium) of US$2.68bn in 2024.
The market is dominated by Life insurances, with a projected market volume of US$1.36bn in 2024.
The average spending per capita in the Insurances market is expected to be US$77.03 in 2024.
When compared globally, it is evident that the United States has the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is anticipated to have an annual growth rate (CAGR 2024-2029) of 1.70%, resulting in a market volume of US$2.91bn by 2029.
In terms of gross written premium, the United States is expected to generate the highest amount globally, at US$3.8tn in 2024.
Ghana's insurance market is experiencing a surge in demand for health insurance products due to the increasing awareness of the importance of healthcare coverage.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Ghana has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Ghana are increasingly seeking insurance products that provide comprehensive coverage at affordable prices. There is a growing demand for innovative insurance solutions that cater to specific needs, such as health insurance and crop insurance. Additionally, customers are placing more emphasis on digital channels for purchasing insurance policies, driving the need for insurers to enhance their online presence and customer service.

Trends in the market: One notable trend in the Ghanaian insurance market is the increasing adoption of mobile insurance services. With the high mobile penetration rate in the country, insurers are leveraging mobile technology to reach a wider customer base and offer convenient insurance solutions. Another trend is the rise of microinsurance products tailored to the needs of low-income individuals and small businesses. This trend is driven by the government's efforts to promote financial inclusion and protect vulnerable populations.

Local special circumstances: Ghana's insurance market is influenced by the country's regulatory environment and infrastructure development. The Insurance Act of 2006 regulates the operations of insurance companies in Ghana, ensuring stability and consumer protection. Moreover, the government's investments in infrastructure projects, such as roads and energy, are creating opportunities for insurers to offer construction and property insurance products.

Underlying macroeconomic factors: The growth of the insurance market in Ghana is supported by favorable macroeconomic conditions, including stable economic growth and a rising middle class. As the economy expands, individuals and businesses have a greater capacity to purchase insurance products to protect their assets and mitigate risks. Additionally, the government's initiatives to promote public-private partnerships in sectors like healthcare and agriculture are driving the demand for insurance coverage, further fueling the growth of the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.