The story is no more as it used to be. Recently, the increase in education in Ghana about insurance, its importance and benefits has sparked a tremendous increase in the subscription to insurance products in Ghana. Not long ago, insurance was one of the low performing sector in Ghana; with low subscribers. Reports prove efforts made has increase not only subscribers, but also insurance companies and brokers.
Insurance in Ghana began in the colonial era; 1924, with the establishment of the Royal Guardian Enterprise now known as the Enterprise Insurance Company Limited. History has it that, the first indigenous private insurance company, the Gold Coast Insurance Company was established in 1955. Later in 1962, the State Insurance Company of Ghana was set up. Eleven more companies were established in 1971. Five years later (1976), seven more insurance companies; and, with just one reinsurance industry and insurance brokerage firms were established.
Till date, more insurance companies is springing up with ranges of products covering the life and non-life, motor, travel, medical and health and householders insurances across the country.
Insurance Policies offered in Ghana includes the following non-life products but not limited to liability policies, engineering policies, marine policies, fire insurance policies and miscellaneous insurance policies. The Life products includes Feneral policy, Keyman policy, Group life policy, credit and mortgage policies, whole life policy, endowment policy and other pensions and annuities products.
Industry players continue to increase every day due to the prosperity of the industry. As at June 2016, the insurance industry was made up of 26 Non-Life companies, 23 Life companies, 3 Reinsurance companies, 70 Broking companies, 1 Reinsurance Broker, 1 Oil and Gas company, 2 Contact Offices and 7000 insurance agents at the length and breadth of Ghana. Glico General Insurance Company Limited, SIC Insurance Company Limited, Enterprise Insurance Company Limited, Vanguard Assurance Company Limited, Donewell Insurance Company Limited, Best Assurance Company Limited are some principal companies in the industry.
The NIC 2013 Annual Reports stated that, the average growth rate in the industry gross premium fell sharply from 35.3% to 23.6% between 2012 and 2013, whereas life recorded a growth rate of almost 32%, non-life grew by 18%. In Cedi terms, the market recorded a total gross premium of GH¢1,052million in 2013 as compared to 850,657,054 in 2012. An amount of GH¢204.09 million (35%) of Non-life premiums was paid to reinsurers both local and international, GH¢41.1 million (7%) was provided for as Unearned Premium leaving a Net Premium Earned for the market of GH¢337.2 million. Management expense totalled GH¢210.2 million (36%) on the average.