GIA President urges insurance companies to tap into low-income markets as premiums soar to $61.2bn in 2021
President of the Ghana Insurance Association (GIA), Seth Aklasi, is calling on insurance companies in Ghana to shift their focus towards inclusive insurance for the low-income markets.
Speaking at the media launch of the 19th International Conference on Inclusive Insurance, hosted by the National Insurance Commission (NIC) on August 1, 2023, Mr. Aklasi emphasized that this sector presents substantial opportunities for insurance firms to prosper.
Mr. Aklasi addressed the skepticism surrounding the profitability of insurance companies in this segment, asserting that provision of insurance for low-income markets is indeed “good business.”
He pointed to a recent 2022 report by the Micro Insurance Network based in Luxembourg, which revealed that insurance companies offering inclusive insurance to the poor and vulnerable accumulated over $61.2 billion in premiums from low-income markets.
The GIA President highlighted the significance of these figures, stating, “In 2021, premiums paid for inclusive insurance from 34 countries in Africa, Latin America, and the Caribbean, with an estimated population of around 223 million, reached a remarkable $61.2 billion. This compelling data reinforces the notion that, with the right approach in terms of product underwriting and distribution, the informal sector and the low-income population can be viable and profitable markets.”
Addressing the launch of the 19th International Conference on Inclusive Insurance, Mr. Aklasi emphasized its crucial role in roping in the low-income and underserved population into the insurance sector.
The conference, organized under the auspices of the National Insurance Commission (NIC), the Munich Re Foundation, the Ghana Insurance Association (GIA), the Insurance Brokers Association of Ghana (IBHAG) and the Micro Insurance Network, seeks to explore strategies to expand insurance coverage and promote financial inclusion among the less privileged segments of the population.
As the insurance industry in Ghana embraces the potential of inclusive insurance, stakeholders are eager to discover innovative approaches that bridge the insurance gap and empower the vulnerable communities to safeguard their futures. The conference presents a unique opportunity for key players to collaborate and pave the way for sustainable and inclusive insurance solutions in the region.
At the 19th International Conference on Inclusive Insurance, experts from around the world representing NGOs, development-aid organisations, regulation, supervision and policy experts as well as the insurance industry will meet to exchange experiences and discuss the challenges involved in extending risk management solutions based on insurance principles to low-income households and MSMEs.
The mission of the International Conference on Inclusive Insurance (ICII) is to provide a non-profit platform for all stakeholders to present and discuss issues, policies and state-of-the-art solutions for efficient, sustainable and inclusive insurance products by;
- promoting the development and proliferation of good-value insurance for emerging economies;
- raising awareness of the demand for insurance in the low-income segment and its potential;
- providing opportunities for insurance and development experts to progressively develop shared visions and create new partnerships.
The 19th International Conference on Inclusive Insurance takes place from October 23 – 27, 2023 in Accra, Ghana.
