In Ghana, the National Insurance Commission (NIC) is the regulator of the insurance industry. Currently, the Insurance Acts, 2006, (Act 724) is the law used by NIC to govern the industry.
The insurance market in Ghana is a flourishing one with huge potential for growth in both life and non-life markets.
Competition is however intense in the Life market as a result of the insurance bill which require the separation of Life and Non-Life businesses and an increase in the capital requirement to ¢7billion.
The insurance market continues to demonstrate some unique characteristics such as: continuous growth as insured seek to self-insure more of their risks, Tougher competition for many finite products and a growing presence in both life and non-life re-insurance.
Product development continues to be concentrated on the core property/casualty market and insurers are constantly seeking to identify alternative solutions for clients whose needs are not being addressed.
The challenges facing the industry includes the under pricing of policies and the worsening position of bad debts which has resulted in most insurance companies making significant underwriting losses.
The need for insurance firms to spread their risks in order to reduce the impact of risk during any catastrophe led to the creation of the Ghana Reinsurance Company, which is mandated to receive legal cession 20% of premium as reinsurance.
The future of the insurance market looks bright especially with the anticipated introduction of a common currency for the West African Common currency.
This will provide great opportunities for companies to explore into the neighboring countries