Motor insurance premium contributes highest to market premium

Motor insurance portfolio has continued to dominate the contributions to the total premium income of general business underwriters over the years.

Figures sighted by B & FT indicates that it has increased from premium income of GH¢1,394,257,027 in 2016 to 1,420,615,996 in 2017. This trend is expected to continue through the years to come.

It is as result of increase in population of vehicles on our roads as well as the periodic review of the motor rates by the regulator, the National Insurance Commission (NIC) to reflect inflation trends.

It should also be noted that motor insurance is a compulsory form of insurance in the country. However, other major contributors to overall premium income are General Accidents and Fire Insurance.

While the contribution of these class increased in the years in review from 2016 to 2017 as a result of major construction works in the country. Fire on the other hand should continue growth as a result of a law passed in 2006 on compulsory insurances on public buildings which gives an opportunity for violators to be prosecuted.

Marine cargo, hull and aviation put together account for about GH¢200,628,831 and GH¢245,922,639 in the years under review respectively. This portfolio also showed decreasing trend in its share of market premium.

Insurers therefore need to embark on effective marketing to provide cover for non-traditional exports whose rate has increased over the years. These could be done by strictly implementing the shipping laws which requires that import should be shipped on freights on board (FOB) to improve the share of marine business in the market.

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