Ghana’s insurance industry has failed to expand its reach over the past year, with new central bank data revealing penetration remains stuck at historically low levels despite signs of economic improvement.
The Bank of Ghana’s 2024 Financial Stability Review shows insurance penetration — measured as the sector’s contribution to GDP — holding at just 1.0% in 2024, unchanged from 2023.
Under the updated IFRS 17 accounting standard, which offers a more precise measure, the figure drops further to 0.63%, highlighting the limited uptake of insurance products among the population.
There are, however, indications of modest progress.
Insurance density — the average annual spending per person on premiums — rose to GH¢202.40 in 2024 from GH¢195.00 the previous year.
This suggests that while the number of policyholders has not grown significantly, those with coverage are either buying larger policies or have greater financial capacity to invest in protection.
The Bank of Ghana attributes future growth potential to digital innovation, inclusive product development and greater public awareness, which it says could help overcome longstanding barriers to adoption.
The life insurance segment continues to demonstrate resilience, with domestic retention of premiums reaching 96.36% in 2024.
This reflects strong reserve management, careful asset-liability matching and prudent investment strategies designed to safeguard policyholders’ funds.
The non-life segment also recorded gains, with retention rising to 73%, up from 69% in 2023.
Despite these improvements, the sector remains heavily dependent on overseas reinsurers.
Transfers abroad surged in 2024, with the National Insurance Commission approving GH¢814 million in reinsurance payments, compared with GH¢656 million the previous year.
This growth underscores the shortage of local reinsurance capacity, particularly for risks requiring foreign currency settlements.
The report maintains cautious optimism, pointing to Ghana’s gradual economic recovery and targeted efforts by the National Insurance Commission to strengthen digital delivery channels and design tailored products, with the goal of bringing more Ghanaians into the insurance safety net.
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