Ghana Insurance Report Q2 2016
BMI View: Ghana's insurance market is small by regional and global standards. However, it is growingrapidly. Insurers are successfully utilising more innovative distribution channels, including the use ofmobile phones and other online services, to reach more households. The increasing availability of moreaffordable microinsurance products is another key channel for growth in a country where many householdsremain in the lowest income brackets. With premiums in both the life and non-life sectors expected to risethroughout the forecast period, we are seeing more regional and multinational insurers take an interest inGhana's growth potential.
Key Updates And Forecasts
Currency movements alongside inflation mean that growth will be higher in local currency termscompared to US dollar terms throughout the forecast period between 2016 and 2020. In the non-lifesector we expect growth to average 15% annually in local currency terms and 9.1% annually in US dollarterms, leading to premiums of GHS1.8bn (USD370mn) in 2020.
In the slightly larger life insurance segment, we expect to see stronger annual growth of 18.8% in localcurrency terms and 12.7% in US dollar terms between 2016 and 2020, leading to total premiums ofGHS1.8bn (USD369mn) by the end of the current forecast period.
Multinational insurers are increasingly taking note of the growth potential in Ghana. Prudential andinvestment partner Leapfrog Investments announced in early 2016 they were launching a USD350mnfund to invest in life insurance companies in Ghana and other leading regional economies over the nextthree to five years. Leapfrog also recently acquired a majority share in Ghana firm UT Life InsuranceCompany.
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