The Ghana Insurers Association disclosed that the volatile exchange rate situation has impacted the settlement of certain claims for policyholders.
In response, the Association’s President, Seth Aklasi, emphasized the need for increased awareness programs among insurers regarding claims settlements to foster ongoing growth in the industry.
Addressing attendees at the media and NIC Insurance Dialogue, Mr. Aklasi stressed the importance of collaborative efforts among stakeholders in driving sectoral development.
“We have more challenge with the economic circumstances which you cannot control, the depreciation of the cedi that makes it way expensive and it’s very challenging”.
“We need to continue engaging people to support the sector because it is critical to the sector”, he mentioned.
Despite the economic downturn, Mr. Aklasi claimed that the industry has improved over time.
“I’m sure the Industry has seen some improvement and as a result, we need to keep pushing to expand coverage”, he added.
Fitch Solutions predicts that Ghana’s insurance sector will experience significant growth in both life and non-life insurance segments, with double-digit rates expected over the medium term.
Despite this growth, overall insurance penetration is anticipated to stay at 1.0% due to a general lack of awareness among the population regarding the advantages of life and non-life insurance coverage.
However, Fitch Solutions notes that Ghana’s insurance industry remains relatively undeveloped. Nonetheless, they highlight promising investment prospects in both life and non-life insurance segments over the medium term.
This optimism is fueled by factors such as the country’s rapidly expanding economy, declining interest rates, and strong consumer and business expenditure.