Ghana’s insurance industry remained profitable in 2024, according to the latest Financial Stability Review. This growth was driven by stronger investment income, better underwriting results—especially in non-life insurance—and insurers’ ability to adapt their investments after the Domestic Debt Exchange Programme.
Both life and non-life insurers recorded good profits, which supports financial stability and could help them grow without the urgent need for more capital.
However, the report cautioned that some risks remain.
For life insurers, investment income was still a major source of stability, working alongside underwriting profits to boost overall performance. But relying too much on investments could make them vulnerable to future economic shocks. The report advised life insurers to focus on strengthening their underwriting profits.
In non-life insurance, profits came from both underwriting and investments, showing a healthier and more balanced earnings structure. This makes the non-life sector more resilient, though their heavy use of reinsurance means future profits could be affected by changes in global reinsurance prices.
The National Insurance Commission (NIC) stressed the need for strong supervision. It said the focus should be on sustainable earnings—built on good underwriting, fair pricing, and cost control—rather than depending too much on investment returns, which can be unpredictable.
source: myjoyonline
