The 2024 Financial Stability Review by the Bank of Ghana has revealed that insurance penetration in Ghana remained relatively low in 2024, holding steady at one per cent of Gross Domestic Product (GDP), the same as in 2023.
Using the Insurance Service Revenue approach under IFRS 17 (Insurance Contracts), the figure was recalculated at 0.63% for 2024.
Despite the low penetration rate, the report expressed optimism for growth, citing digitalisation, innovation, inclusive insurance, and public education as key drivers expected to boost uptake in the coming years.
The report noted that insurance density, representing average per capita insurance spending increased to GH¢202.40 in 2024, from GH¢195.00 in 2023, indicating larger policy sizes or increased disposable incomes due to easing economic pressures on households and businesses.
It further highlighted strong premium retention in the life insurance segment, which stood at 96.36 % in 2024, underscoring the importance of prudent reserving, effective asset–liability matching, and sound investment strategies to safeguard policyholder funds.
Retention in the non-life insurance segment remained relatively stable, with the ratio rising to 73% in 2024, up from 69% in 2023.
However, overseas reinsurance premium transfers increased significantly.
In 2024, the National Insurance Commission approved GH¢814 million in transfers to foreign reinsurers, compared to GH¢656 million in 2023, signalling ongoing limitations in local reinsurance capacity and greater dependence on international reinsurers, particularly for foreign currency-denominated payments.
