Non-life insurances - Ghana

Ghana

The Non-life insurance market in Ghana is expected to reach a market size (gross written premium) of US$1,319.00m in 2024.
This signifies a significant growth potential for the insurance sector in the country.
Furthermore, the average spending per capita in the Non-life insurance market is projected to be US$37.94 in 2024, indicating a positive trend in insurance penetration among the population.
Looking ahead, the gross written premium is forecasted to demonstrate an annual growth rate (CAGR 2024-2029) of 1.69%.
This growth trajectory is expected to contribute to a market volume of US$1,434.00m by 2029, showcasing the potential for further expansion and development in the Non-life insurance segment.
When compared globally, it is noteworthy that the United States is anticipated to generate the highest gross written premium in the Non-life insurance market, amounting to a staggering US$2,500.0bn in 2024.
This reinforces the dominance of the US market in the insurance industry and highlights the scale of its contribution to the overall global market.
With these projections and figures, it is evident that the Non-life insurance market in Ghana has significant potential for growth and development in the coming years.
The country can leverage this opportunity to strengthen its insurance sector and provide valuable coverage and protection to its citizens.
Ghana's non-life insurance market is witnessing a surge in demand due to increased awareness and a growing middle class.

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Analyst Opinion

Over the past few years, the Non-life insurances market in Ghana has been experiencing significant growth and development.

Customer preferences: Customers in Ghana are increasingly seeking Non-life insurance products to protect their assets and mitigate risks associated with unforeseen events such as accidents, natural disasters, and theft. There is a growing awareness among consumers about the importance of having insurance coverage, driving the demand for Non-life insurance products in the country.

Trends in the market: One notable trend in the Non-life insurances market in Ghana is the introduction of innovative insurance products tailored to the specific needs of the local population. Insurers are diversifying their product offerings to include policies that cover areas such as agriculture, health, and travel, catering to the unique requirements of Ghanaian customers. Additionally, there is a growing trend towards digitalization in the insurance industry, with more companies offering online platforms for purchasing and managing insurance policies.

Local special circumstances: The regulatory environment in Ghana plays a crucial role in shaping the Non-life insurance market. The National Insurance Commission (NIC) oversees the insurance industry in the country, ensuring compliance with regulations and promoting transparency and consumer protection. This regulatory framework provides stability and confidence in the market, fostering growth and innovation among insurance providers.

Underlying macroeconomic factors: The economic stability and growth in Ghana have also contributed to the development of the Non-life insurance market. As the economy expands and incomes rise, more individuals and businesses are able to afford insurance coverage, driving overall market growth. Additionally, the government's efforts to improve financial inclusion and promote insurance awareness have further boosted the demand for Non-life insurance products in the country.

Methodology

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.