Insurance Penetration in Ghana Stagnates at 1% in 2024
Insurance penetration in Ghana remained unchanged at 1.0% in 2024, maintaining the same level recorded in 2023, the Bank of Ghana’s 2024 Financial Stability Review has revealed.
Using the new Insurance Service Revenue metric under IFRS 17 (Insurance Contracts), penetration for 2024 was lower at 0.63%. The report expressed optimism that digitalisation, innovation, inclusive insurance and intensified public education could drive penetration higher in the coming years.
“Although insurance penetration remained low, insurance density showed an improvement compared to the previous year,” the report noted.
Insurance density — measuring per capita insurance spending — rose to GH₵202.40 in 2024 from GH₵195 in 2023. This growth suggests larger average policy sizes or an improvement in disposable incomes, reflecting a gradual easing of economic pressures on households and businesses.
Premium Retention Rates
The life segment’s premium retention remained strong at 96.36% in 2024, underscoring robust reserving practices, sound asset-liability management, and prudent investments to safeguard policyholder funds and avert solvency risks.
Non-life premium retention was broadly stable, increasing to 73% in 2024 from 69% in 2023. According to the report, this level signals the sector’s capacity to meet more domestic demand, reducing reliance on external reinsurance markets, limiting exposure to global reinsurance price cycles, and curbing foreign exchange outflows — a key concern amid Ghana’s macroeconomic pressures.
Rising Overseas Reinsurance Transfers
Overseas reinsurance premium transfers, however, recorded a sharp increase. The National Insurance Commission (NIC) approved GH₵814 million in offshore reinsurance premium transfers in 2024, compared with GH₵656 million in 2023.
The report attributed the rise to limitations in local underwriting capacity and increased dependence on foreign reinsurers, with more remittances denominated in foreign currency. While offshore reinsurance aids risk diversification, the central bank cautioned that it also heightens exposure to foreign exchange volatility and capital outflows, which could exacerbate systemic liquidity pressures in the event of sharp exchange rate swings.
