Insurance penetration in Ghana is projected to remain around 1.0% in 2024, as highlighted in Deloitte’s Africa Insurance Outlook 2024. Despite this, the insurance market in the country is still largely underdeveloped.
According to the report, Africa, with the exception of South Africa, where insurance penetration is at 11.54%, remains a largely untapped market. To address this gap, several innovative insurance start-ups have emerged across the continent, harnessing mobile technology to offer microinsurance products to underserved populations. These solutions are not only affordable but often provide instant and easily accessible coverage for life, health, and crop insurance, reaching millions of individuals who were previously uninsured.
Among these start-ups is Turaco, a Kenyan insurtech company that also operates in Uganda and Nigeria. Another example is BIMA, a micro-insurance company that caters to low-income individuals in Ghana, Kenya, and Tanzania. BIMA, which has gained over 30 million customers, utilizes mobile technology in partnership with mobile money providers, network operators, and insurance underwriters to deliver affordable health, life, and personal accident insurance.
Deloitte’s report underscores the vast potential of the African insurance market, fueled by the growth of insurtech and fintech startups, a rapidly growing population, and persistently low insurance penetration rates. While the COVID-19 pandemic may have delayed some of the expected growth in the sector, it has simultaneously demonstrated the resilience of the industry and its capacity for expansion.
SOURCE: JoyBusiness
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