Since the enactment of the Insurance Act, 2006 (Act 724), which promoted the development of local
content requirements, the Ghanaian insurance industry has experienced a decade of rapid growth,
with the proliferation of private companies and brokers. However, there are still challenges that
confront the Insurance Industry that is of major concern to the National Insurance Commission (NIC).
Among the major challenges are: low insurance penetration and coverage; under-utilization of ICT;
low actuarial expertise; weak market conduct regime/rules; under-capitalization of some of the
insurance companies, among others. The outbreak of the coronavirus (COVID-19) pandemic is not
going to make it any easier to resolve some of these challenges. Further deepening the challenges was
the 3-week partial lock-down (March 30th to April 20th 2020) in Greater Accra and Greater Kumasi areas
which saw the truncation of direct marketing of insurance products since most insurers across the
country worked remotely, and 65% of life insurance products are sold by agents who were also
affected. Notwithstanding the challenges outlined, the NIC is expecting insurance companies to
recapitalize by June 30, 2021. Even though the government has eased some restrictions imposed on
industry and persons, the socio-economic impact of the pandemic and related restrictions is yet to be
assessed on industry basis.