A strong life insurance industry is a necessary condition for long-term funds mobilisation. A well-managed, dynamic and profitable life insurance sector adds to the vibrancy of the economy.
Over the years, Ghana’s insurance sector has taken incremental steps to a posture that strengthens this sector to support the ultimate goal of transforming its economy into middle-income status.
The results are obvious compared to 10 years ago, since when life insurance companies have gained an imposing presence on the Ghanaian landscape.
With the introduction of the new insurance law Act 724 of 2006, it was stipulated that all life insurance companies separate their operations from non-life.
Since the introduction of this new law barely three years ago, Ghana’s life insurance market has witnessed tremendous growth in terms of number of companies, sophistication and reach.
Prior to the separation of life business from non-life, there were only 15 companies – five of which were specialist life underwriters.
Those companies are GLICO LIFE, Ghana Life, Enterprise Life Assurance Company (ELAC). They were also the top premium income earners.
Importantly, since the separation two years ago, the number of underwriting companies has increased by 11 % from 15 to 17.
The companies presently operating include SIC Life; ELAC; Star Life; Vanguard Life; Metropolitan Life Ghana; GLICO Life; Quality Life and Provident Life.
Others include Donewell Life, Phoenix Life, Unique Life; Ghana Union Life; Ghana Life; CDH Life; Express Life; IGI Life and Capital Express Life.
Apart from Metropolitan Life, ELAC, IGI Life, Capital Express and Ghana Life, the remaining 12 companies are wholly indigenous and owned by local investors.
Long Term Assurance Underwriting Trends
Life Assurance business gross premium income increased by 34.0% from GH¢91,245 in 2008 to GH¢122,275 in 2009, while management expense increased by 41.9% from GH¢35,014 to GH¢49, 691.
Net premium also grew, by 33.3%, from GH¢89,801 to GH¢119,708, while claims incurred increased by 38.3%