Inclusive insurance in Ghana

An Open Door for An Innovative Inclusive Insurance Market

With most of the workforce in Ghana employed in the informal sector, inclusive insurance is a fundamental need to build the resilience of the population. The insurance industry and its regulator, the National Insurance Commission, have implemented various initiatives that have enabled the development of microinsurance in Ghana. Although the insurance sector is small relative to GDP, the uptake of inclusive insurance is relatively high, at 26% according to the 2021 Landscape of Microinsurance survey, and has been growing steadily thanks to consistent efforts and coordination by national and international stakeholders. In 2021, a new Insurance Act was enacted, opening the door for innovative market development initiatives.

Key Insights

• Agriculture plays a key role in Ghana’s economy and the country is the second biggest producer and exporter of cocoa in the world.
• Ghana has experienced floods, droughts and coastal erosion which have affected key economic sectors. The country is vulnerable to climate change which is expected to increase the frequency of extreme weather events. In response, the government has launched climate change adaptation strategies and policies.
• In June 2022, the Insurance Development Forum (IDF), the German Government, the United Nations Development Programme (UNDP) and the Ghana Ministry of Finance announced the launch of a Tripartite project to develop a sovereign risk transfer scheme for urban floods in Ghana.
• Mobile money contributed significantly to financial inclusion in Ghana which has been classified as the fastest growing mobile money market in Africa.