Gross premiums in the country’s insurance sector have declined in the first six months of 2023.
As of the end of June 2023, the gross premiums have fallen to GHS 2.76 billion from the GHS 3.07 billion posted during the same period last year.
However, recent developments in the insurance sector as captured in the 2022 Financial Stability Review by the bank of Ghana paints a picture of a growth trajectory in the first half of the year.
This is despite the impairment from the domestic debt exchange programme.
In the period under review, total insurance assets grew marginally from GHS 11.06 billion to GHS 11. 56 billion cedis.
Total investments also increased to GHS 8.61 billion from GHS 8.23 billion.
In terms of profitability, the industry’s expense ratio remained elevated in the first six months of 2023.
But the year-on-year fall in the gross premiums is expected to improve by the end of the year.
With this drop in the gross premiums, however, it is expected that insurance penetration will be on an appreciable ascendancy in the medium to long-term.
The retention of the premiums according to the indicators will be higher given the resilience shown by the industry, the regulation and supervision as well as the digitalization drive by the National Insurance Commission.