Ghana’s insurance industry maintained its resilience in 2024, recording notable gains in premium retention and per capita spending, despite overall penetration remaining at a modest 1.0% for the second consecutive year.
According to the 2024 Financial Stability Review, life insurance premium retention stayed strong at 96.36%, reflecting robust reserving practices, sound asset–liability management, and prudent investments aimed at protecting policyholder funds. The non-life retention ratio also climbed to 73% from 69% in 2023, pointing to improved utilisation of local underwriting capacity.
Insurance density — the average per capita expenditure on insurance — rose to GH₵202.40 in 2024, up from GH₵195 in 2023. Analysts say this increase signals either a shift toward larger policy sizes or a recovery in disposable incomes, offering hope for future growth.
However, the sector’s reliance on overseas reinsurance continues to deepen, with the National Insurance Commission approving GH₵814 million in premium transfers abroad in 2024, compared to GH₵656 million a year earlier. While such arrangements provide risk diversification, they also create exposure to exchange rate volatility and potential liquidity pressures.
The report suggests that further digitalisation, innovative products, inclusive insurance schemes, and sustained public awareness campaigns could help expand coverage and reduce the country’s heavy dependence on foreign reinsurers.
