The National Insurance Commission (NIC) is leading the implementation of an inclusive insurance strategy to increase access to insurance, product transparency and consumer protection, according to the Bank of Ghana's 2024 Financial Stability Review.
Insurance penetration in Ghana remains low, with a significant portion of the population lacking insurance protection against risks. Many low-income individuals, informal sector workers, and rural communities remain uninsured due to affordability barriers, product complexity, and limited access to traditional distribution channels.
The insurance penetration remained at 1.0% in 2024, the same as in 2023. However, with the adoption of IFRS 17 (Insurance Contracts), insurance penetration for 2024 stood at 0.63%.
To encourage the provision of inclusive insurance products, the NIC seeks to expand coverage to the underserved population. Recognizing the need for a structured approach, the NIC is also enhancing its supervisory framework, starting with a review of the Microinsurance Market Conduct Rules, alongside the Inclusive Insurance Strategy.
Although insurance penetration remained low, insurance density showed an improvement compared to the previous year. Insurance density, which measures per capita insurance spending, increased to GHS202.40 ($19.18) in 2024 from GHS195 in 2023. The report said, “This growth primarily suggests an increase in average policy sizes or an improvement in disposable income, reflecting the easing of economic strain on households and businesses.”
It also said, “In the years ahead, on the back of digitalisation, innovation, inclusive insurance and public education, insurance penetration is expected to increase.”