Life insurance - Ghana | Statista Market Forecast

The Life insurance market market in Ghana is projected to reach a market size (gross written premium) of US$1.36bn in 2024.
This translates to an average spending per capita of US$39.09 for the same year.
The market is expected to show an annual growth rate (CAGR 2024-2029) of 1.72%, resulting in a market volume of US$1.48bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
Ghana's life insurance market is experiencing a surge in demand as more individuals seek financial protection and security for their families' futures.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. 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.

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, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in Ghana has been experiencing significant growth and development in recent years. Customer preferences in the Ghanaian life insurance market are shifting towards more comprehensive coverage options that provide not only financial protection but also investment opportunities. Customers are increasingly looking for policies that offer a wide range of benefits and flexibility to meet their evolving needs and lifestyles. Trends in the market indicate a growing awareness and understanding of the importance of life insurance among Ghanaians. As disposable incomes rise and the middle class expands, more individuals and families are seeking to secure their financial futures through life insurance products. Additionally, advancements in technology and digitalization have made it easier for insurance companies to reach a wider customer base and offer more personalized services. Local special circumstances, such as the demographic profile of Ghana with a young and growing population, play a significant role in shaping the life insurance market. With a large youth segment entering the workforce and starting families, there is a growing demand for life insurance products to protect against unforeseen circumstances and secure the future of their loved ones. Underlying macroeconomic factors, including stable economic growth, regulatory reforms to strengthen the insurance industry, and increasing financial literacy among the population, have created a conducive environment for the expansion of the life insurance market in Ghana. As the country continues on its path of economic development and financial inclusion, the life insurance sector is expected to further flourish and contribute to the overall stability of the financial system.

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.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.