Ghana’s insurance industry recorded real revenue growth of 19.9 per cent in 2025, the Financial Stability Review has revealed.
The report, issued under the Financial Stability Council (FSC), said the growth was markedly higher than the 7.6 per cent achieved in 2024, reflecting a more sustainable trajectory for the sector.
“The insurance industry has experienced remarkable improvements in the past year through improved regulation and innovation, which has been reflected in strong solvency positions and sustained retention of premiums,” the Review stated.
It attributed the performance to enhanced regulatory oversight, innovation in products, and increased retention of premiums within the domestic market.
Premium retention was particularly strong in life insurance, which held 95.3 per cent of premiums in 2025, signalling confidence in local underwriting capacity.
The Review noted solvency conditions remained robust, with capital adequacy ratios for life and non-life insurers well above regulatory minimums, supported by equity growth, retained earnings, and prudent risk management.
Despite the gains, insurance penetration was described as relatively low compared to economic expansion, with calls for targeted strategies to broaden coverage, including microinsurance and agricultural insurance.
The report highlighted ongoing reforms such as the Risk-Based Capital framework and new regulatory directives to strengthen market discipline. Compulsory local insurance for commercial imports and improvements to the motor insurance database were also expected to deepen the industry.
Digitalisation and innovation were identified as key drivers of future growth, alongside regulatory measures to address emerging risks such as cybersecurity and operational vulnerabilities.
The Review reaffirmed that consolidating gains through collaboration between regulators and industry players was essential to building public trust, promoting financial inclusion, and supporting overall financial stability.
GNA
