Life insurance set to reach 1.6bn in 2019
A new report from Timetric’s Insurance Intelligence Center (IIC) forecasts Ghana's life insurance market to more than double in 2019.
The life insurance market in Ghana performed well over the last few years, with the life gross written premium rising from GHS187 million in 2010 to GHS584.5 million in 2014. This growth is 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.
“Microinsurers collaborate with mobile networks to reduce transaction costs and make products affordable to low-income buyers. This also helps insurers to collect premiums and settle claims through mobile wallets,” comments Jay Patel, Insurance Analyst at Timetric.
According to the Timetric research, the number of mobile phone subscriptions in Ghana grew annually by 20.0% 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.
“On the other hand, rising foreign participation is also expected to lead to more innovative products for rural buyers, driving the life segment over the forecast period,” Patel continues.
Overall, Timetric expects the life insurance segment to grow from GHS584.5 million (US$224.8 million) in 2014 to GHS1.6 billion (US$461.6 million) in 2019.
Although the life segment's share is anticipated to increase over the next four years, the non-life segment's share, on the other hand is expected to decline from 45.4% to 39.7%, followed by the personal accident and health segment's share which is set to decline from 7.4% to 6.1% in 2019.