Digitization and policy initiatives is expected to favour insurance sector premium growth, Databank Research has revealed
Insurance penetration rate presently is less than 2% in Ghana.
But Databank Research says the outlook of the insurance sector remains positive given the implementation of the Motor Insurance Database (MID) and the introduction of the Marine Cargo Insurance Protocol by the National Insurance Commission to boost gross premium revenues.
“The Motor Insurance Database, a digitized platform for motor insurance, which is to aid instant verification by law enforcers and to correct price undercutting in the sector will continue to support gross premium growth”, it emphasized.
Furthermore, it said the Marine Cargo Insurance Protocol, an MOU signed by the regulator, Ghana Shippers Authority (GSA) and the Ghana Revenue Authority (GRA) should support marine insurance premium growth.
These new developments the Databank Research said paint a positive picture that the sector’s profitability should remain strong, with Enterprise Group (leader of life and nonlife insurance) and SIC Insurance (the second largest non-life insurance company) tipped to be the major beneficiaries.
There are presently 130 licensed insurance firms and they comprise of 17 Life Insurance Companies, 23 Non-Life Insurance Companies, 3 Reinsurance Companies and 87 Insurance Brokers and Loss Adjusters