Umbrella body of insurance professionals, the Chartered Insurance Institute of Ghana (CIIG), says it will champion the redefinition of the sector’s penetration rate to reflect that of pensions and health insurance.

Currently, the sector’s contribution to GDP is hovering around 1% – limited to only life and non-life insurance premium contributions.

According to CIIG, compared to some other jurisdictions on the continent, Ghana’s measure of the penetration rate is constrained by the exclusion of health insurance and pensions assets.

Citing South Africa’s sector as an example, President of the CIIG, Tawiah Ben-Ahmed told Joy Business, it has become imperative to review the factors that contribute to insurance penetration in Ghana.

“As of 2020, the market premium was about 3.9 billion – 2 billion of which is the contribution of life insurance and about 1 billion of which is the contribution of general insurance.” He said.

He added, “In the first quarter of 2022, the CIIG is going to come up with a journal and it is going to redefine insurance penetration in Ghana to have a consolidated view of the rate, so that when we talk about insurance penetration in Ghana it is not only the contribution of life and general insurance but also pensions and health insurance.”

Meanwhile, the Commissioner of Insurance, Dr. Justice Yaw Ofori, has expressed optimism about the new insurance act, Act 2021, Act 1061 to improve insurance penetration.

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He said, “The Act (Act 2021, Act 1061) will be supplemented with regulations to ensure that the benefits of this forward-thinking legislation are fully reaped by the market.”

“It is hoped that this will result in the growth of the insurance sector leading to the development of the national economy.” The Commissioner added.

The 3-day 2021 Chartered Insurance Institute of Ghana Educational Conference and Annual General Meeting was themed “Increasing insurance penetration and coverage, Role of Regulations, innovation and ethics”.