Some insurance companies in the country may lose their licences for not adhering to the best practices in the insurance industry.

President for Chartered Insurance Institute of Ghana Rev Asante Marfo Ahenkora said insurance companies need to do things right to avoid the collapse of their businesses.

He noted that if things are not done appropriately some of the insurance companies will lose their licences soon.

"What has happened over the years is some times in our bid to make money we forget that we still have to keep the principles that have enabled the insurance to thrive like what is happening in the banking sector, I'm sure some professionalism was put aside and that led to some of the situations we had, so it is important that as professionals we go back to the basics we go back and relearn the principles and not be hit by any adverse thing that can bring our companies down, a lot have been said, we've been bashed left, right and centre, our claim processes are not good enough, underwriting is not good enough and we cannot sit back and do nothing." 

Insurance penetration rate drops to 1 percent

The country’s Insurance penetration rate has dropped to 1 percent from the previous rate of 1.12 percent, the 2018 report of the National Insurance Commission has revealed.

The new rate includes both life and nonlife insurance.

The decline of insurance penetration rate last year was witnessed despite the 21 percent growth in the industry’s gross written premiums. The NIC has blamed the reduction in the figures to the rebasing of the economy.

According to NIC’s 2018 report on the insurance industry, only 30 percent of Ghanaians have insurance cover.

The report also revealed that 28 Non-life insurance companies, 2 life insurance companies, 23 insurance brokers were sanctioned for various infractions in 2018.