Trust, an Irish Market Research institution has revealed that only 5% of Ghana’s 24 million population are insured.

The report, which was commissioned by Ghana’s National Insurance Commission shows that over 23 million Ghanaians are yet to have any form of insurance.

This means that majority of the Ghanaian population stand the risk of loosing their investments in case of accident, disability or death.

Insurance penetration in Ghana is less than 2% compared to South Africa’s 14.8%. A similar study conducted in Nigeria also revealed a 0.08 market penetration for insurance.

While announcing the report at the maiden edition of Brokers Summit organised by Starlife Assurance Limited in Accra, the commission’s Head of Marketing, Research and External Relation, Isaac Yaw Buabeng blamed the recorded low penetration on lack of understanding on some of the products by prospective consumers.

The commission has however presented a proposal for the amendment of the Insurance Law 2006 (Act 724). It believes the law does not comprehensively capture how members of the informal sector can benefit in the insurance business.

He urged government to provide legal backing to encourage innovation like South Africa’s, where technology is utilized to bring insurance product to consumer’s doorstep.

Image Via Africa Report