The National Insurance Commission says the country’s insurance sector has seen significant growth despite a dip in insurance penetration rate. The country experienced a reduction in Insurance penetration rate in 2018, from 1.12 percent to 1 percent.The NIC has attributed the decline to the rebasing of the economy which has now included other factors in the calculation of GDP.
Explaining how the sector can be boosted after the decline, Commissioner of Insurance, Justice Ofori says despite the current situation, the sector is doing very well, adding that his outfit is targeting a 6 percent penetration rate by 2020. “There was a time that the insurance penetration rate was about 2.5%. But in those days, just a few people had insurance. It was because the basket of GDP didn’t include so many things. Now we have oil and gas and the agriculture sector is also doing well. So it doesn’t mean that insurance is not doing well,” he told to Citi Business News on the sidelines of the 10th Ghana RE Cedants Award.
He believes the intensification of education and other measures will yield positive results. About 10 insurance companies won a total of 14 awards for their contributions towards the growth of the insurance sector at the 10th RE Cedant Awards. Activa Insurance Company limited was adjudged the overall best insurance company and was crowned the Cedant of the year.