Life insurance set to reach GH¢1.6bn in 2019

A new report has forecast that Ghana's life insurance market will more than double in 2019.

According to a report authored by Timetric’s Insurance Intelligence Center (IIC) dubbed, ‘Insurance in Ghana, Key Trends and Opportunities to 2019’, the  life insurance market in Ghana performed well over the last few years, with the life gross written premium rising from GH¢187 million in 2010 to GH¢584.5 million in 2014. 

This growth, the report said, was as a result of expansion in the middle-class population, along with the introduction of microinsurance products in the life and personal accident and health segments through telecommunication companies. 

Mobile network collaboration

Additionally, Mr Jay Patel, an Insurance Analyst at Timetric, said microinsurers in Ghana collaborated with mobile networks to reduce transaction costs and make products affordable to low-income buyers, adding that it helped insurers to collect premiums and settle claims through mobile wallets.

Also, he said, the number of mobile phone subscriptions in Ghana grew annually by 20 per cent in 2014 to reach 25.6 million. 

“This indicates potential for mobile-driven services in the country, and developing mobile products for the low-income populations in rural areas will drive the industry over the forecast period,” he said.

Foreign participation 

Mr Patel said rising foreign participation was also expected to lead to more innovative products for rural buyers which would in turn drive the life segment over the forecast period.

“Overall, Timetric expects the Ghanaian life insurance segment to grow from GH¢584.5 million (US$224.8 million) in 2014 to GHc1.6 billion (US$461.6 million) in 2019”, he said. 

However, he said although the life segment's share was anticipated to increase over the next four years, the non-life segment's share was expected to decline from 45.4 per cent to 39.7 per cent , followed by the personal accident and health segment's share which was  set to decline from 7.4 per cent per annum to 6.1 per cent in 2019.