The insurance penetration rate in Ghana is expected to hover around 1.0% in 2024, according to Deloitte’s Africa Insurance Outlook 2024.
However, insurance penetration in the country remains relatively untapped.
“Apart from South Africa, where the insurance penetration rate stands at 11.54%, the rest of the African continent remains relatively untapped,” the report noted.
Africa has been attracting several innovative start-up insurance companies aiming to bridge the insurance gap. These start-ups have leveraged mobile technologies to provide microinsurance solutions to underserved and previously unreachable customers.
They offer affordable, sometimes instant, and accessible insurance coverage, including life, health, and crop insurance, reaching millions of previously uninsured individuals.
Examples of these start-ups include Turaco, a Kenyan insurtech with additional operations in Uganda and Nigeria.
Similarly, BIMA, a micro-insurance company servicing low-income customers in Ghana, Kenya, and Tanzania, uses mobile technology to offer affordable health, life, and personal accident insurance cover to over 30 million customers. It has partnered with mobile money providers, mobile network providers, and insurance underwriters.
Deloitte pointed out that the African insurance market still offers immense opportunities for insurance players, fueled by the emergence of insurtech and fintech start-ups, along with strong population growth and low insurance penetration levels.
The report added that although the COVID-19 pandemic may have delayed the anticipated boom in the African insurance market, it has also highlighted the industry’s resilience and potential for growth.
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