Ghana’s insurance industry recorded a real revenue growth of 19.9 per cent in 2025, according to the Financial Stability Review 2025.
The report, published under the auspices of the Financial Stability Council (FSC), said the performance marked a significant improvement over the 7.6 percent growth recorded in 2024, signalling a stronger and more sustainable growth path for the industry.
According to the Review, the improved performance was driven by stronger regulatory oversight, innovation in insurance products, and increased retention of premiums within the domestic market.
“The insurance industry has experienced remarkable improvements in the past year through improved regulation and innovation, which has been reflected in strong solvency positions and sustained retention of premiums,” the report stated.
The Review indicated that premium retention remained particularly high within the life insurance segment, which retained about 95.3 percent of premiums in 2025.
The report said the development reflected growing confidence in the capacity of local insurance firms to underwrite risks within the domestic market.
It further disclosed that solvency conditions across the industry remained robust, with capital adequacy ratios for both life and non-life insurers remaining significantly above the regulatory minimum requirements.
According to the report, the strong capital position of insurance companies was supported by growth in equity, improved retained earnings, and prudent risk management practices adopted by firms within the sector.
Despite the strong growth recorded, the Financial Stability Review noted that insurance penetration in Ghana remained relatively low compared to the pace of economic expansion.
The report stressed the need for targeted measures to broaden insurance coverage and improve access to insurance products across underserved populations.
It highlighted the importance of expanding microinsurance, agricultural insurance, and other inclusive insurance products to improve uptake, especially among low-income earners and vulnerable groups.
The Review also pointed to ongoing reforms aimed at strengthening the industry, including the implementation of a Risk-Based Capital framework and new regulatory directives designed to improve market discipline and resilience.
In addition, initiatives such as compulsory local insurance for commercial imports and improvements to the motor insurance database are expected to deepen the industry and reduce dependence on foreign insurance coverage.
The report further noted that digitalisation and innovation would continue to play a key role in driving growth within the sector.
At the same time, regulators are pursuing measures to address emerging risks, including cybersecurity threats and operational vulnerabilities facing insurance firms.
The Financial Stability Review emphasised that sustained collaboration between regulators and industry players would be critical to consolidating gains, enhancing public trust, and strengthening financial inclusion.
It reaffirmed that a resilient insurance industry remained essential to supporting Ghana’s overall financial system stability and long-term economic growth.
