Insurance penetration in Ghana remained low in 2024, holding at 1.0% based on gross premiums — the same level recorded in 2023.

This is according to the 2024 Financial Stability Review.

Under the Insurance Service Revenue metric introduced by IFRS 17 (Insurance Contracts), penetration for 2024 was lower at 0.63%.

The report anticipates that digitalisation, product innovation, inclusive insurance schemes, and sustained public education could drive penetration higher in the coming years.

Insurance density — the average per capita spend on insurance rose to GH?202.40 in 2024 from GH?195 in 2023.

This growth reflects larger average policy sizes or improved disposable incomes, indicating a modest easing of economic strain on households and businesses.

Life insurance premium retention remained high at 96.36%, underscoring the importance of strong reserving, sound asset–liability matching, and prudent investment practices to safeguard policyholder funds.

The non-life retention ratio was 73% in 2024, up from 69% in 2023, signalling the sector’s potential to better utilise local capacity and reduce reliance on external reinsurance markets.

However, overseas reinsurance premium transfers increased significantly, with the National Insurance Commission (NIC) approving GH?814 million in 2024, compared to GH?656 million in 2023.

This rise highlights persistent constraints in local capacity and a growing dependence on foreign reinsurers, leading to higher premium remittances in foreign currency.

While offshore reinsurance offers risk diversification, it also exposes the industry to exchange rate volatility and capital outflows that could heighten liquidity pressures if currency fluctuations intensify.