The insurance penetration rate in Ghana is projected to remain at around 1.0% in 2024, according to Deloitte’s Africa Insurance Outlook 2024.
Despite this, the insurance market across much of the continent remains largely untapped. Deloitte noted that, apart from South Africa—where the insurance penetration rate stands at 11.54%—the rest of Africa has seen limited adoption of insurance services.
However, the continent has been attracting innovative start-up insurance companies seeking to close the insurance gap. These start-ups have utilized mobile technologies to deliver microinsurance products to underserved and previously unreachable populations.
By offering affordable, instant, and easily accessible coverage in areas such as life, health, and crop insurance, these companies have extended insurance services to millions of individuals who were previously uninsured.
For instance, Turaco, a Kenyan-based insurtech operating in Uganda and Nigeria as well, has introduced microinsurance solutions to these markets. Similarly, BIMA, a microinsurance provider, serves low-income customers in Ghana, Kenya, and Tanzania. BIMA leverages mobile technology to deliver cost-effective health, life, and personal accident insurance to over 30 million customers, partnering with mobile money platforms, telecom providers, and insurance companies.
Deloitte emphasized that Africa’s insurance sector presents significant opportunities for growth, driven by the rise of insurtech and fintech start-ups, combined with rapid population growth and low insurance penetration. While the COVID-19 pandemic may have delayed the expected expansion of the African insurance market, it also underscored the industry’s resilience and its potential for long-term development.
Source: TheDotNews