Insurance providers in the country have been urged to offer relevant insurance products to help the industry grow.
Currently, insurance penetration in Ghana is still below 2.0 percent of the total value of the financial markets even though the banking industry which is also in the sector has recorded some moderate growth in recent times.
Speaking to Citi Business News at the Sidelines of the Annual General Meeting (AGM) of the Enterprise Group, the Chief Executive Officer of the group, Keli Gadzekpo maintained that one major way to encourage insurance penetration in the country is to enforce the laws governing the industry.
“Legislation is one, on the law books in Ghana there are certain classes of insurance which are compulsory and should be had, but somehow, are not necessarily being had, and so those laws need to be enforced” he said.
He explained that such insurance products are necessary to protect the basic needs of people.
He added that insurance providers must educate people as to the relevance of insurance in some aspects, particularly life insurance which is not compulsory but very important.
“I think insurance providers have some work to do to educate people on the relevance of insurance, especially life insurance,” he stressed.
Financial performance of Enterprise Group
On its 2015 financial performance, Mr. Gadzekpo disclosed that the group saw a total asset growth of 633 million Ghana cedis, while Net Insurance Premium and Group Net Income increased to 253 million cedis and 349 million cedis respectively.
The company declared a dividend of 5 pesewas per shares which was accepted by the shareholders.
“Overall, we would rate the year 2015 as exciting, somewhat difficult, but ultimately successful year,” he said adding that the group was able to adapt to the economic conditions.
He noted that the group maintained its growth trajectory, achieving Group net income growth of 21.1 percent and PAT of GHS51.6 million lower than 2014.
Touching on some specific areas, Mr. Gadzekpo stated that Enterprise Life attained the number one market position with 27.7 percent market share, up from prior year’s 26.9 percent, overtaking the consistent number one player since the Enterprise Life business.
“In addition, Enterprise Life Insurance regained its number two position with 12.9 percent market share, after ceding that position as at the end of 2014,” he said.
Total Group net expenses of GHS of 290.3 million represented an overall growth of 30.6 percent.
He explained that this was driven by a growth of 48.7 percent in the 2015 actuarial provision for life policy holders of GHS69.3 million.
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By: Lawrence Segbfia/citibusinessnews.com/Ghana