• Despite Emergence of Several Innovative Start-up Insurance Companies 

The insurance penetration rate in Ghana remains low at 1.0% in 2024 despite several emerging innovative start-up insurance across the country, sighted by Brand Focus Africa, Deloitte has revealed in its Africa Insurance Outlook 2024 report.

It said apart from South Africa, where the insurance penetration rate is at 11.54%, the rest of the African continent remains relatively untapped.

It noted that 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.

However, customers are not being hooked by these start-ups, due to various economic challenges, including high inflation, currency volatility, and elevated interest rates.

Ghana’s insurance industry, for instance, faces significant headwinds, impacting consumer purchasing power and business operating costs.

Nonetheless, 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 and coupled with strong population growth and low insurance penetration levels.

It added that although the COVID-19 pandemic may have delayed the anticipated boom in the African insurance market, it highlights the industry’s resilience and potential for growth.

To address the aforementioned challenges, the government and insurance industry must work together to create a more stable economic environment, improve financial inclusion, and promote insurance awareness.

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