ANNUAL REPORT 2019 of the Insurance Industry, Ghana
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NATIONAL INSURANCE COMMISSION INSURANCE NATIONAL 2019 ANNUAL REPORT 2019 ANNUAL ANNUAL REPORT 2019 of the Insurance Industry, Ghana www.nicgh.org National Insurance Commission ANNUAL REPORT 2019 of the Insurance Industry, Ghana NATIONAL INSURANCE COMMISSION TABLE OF CONTENTS 4 Welcome 5 Foreword 7 Chairman’s Report 10 Key Facts The National Insurance Commission 12 Corporate Information Ghana Insurance Market Report 25 Economic Review 28 Ghana Insurance Market Report (2015 – 2019) 60 Anti-Money Laundering and Combating the Financing of Terrorism Activities 62 Research at a Glance 63 Financial & Ratio Analysis Appendices 94 2019 Financial Reports 96 National Insurance Commission 130 Fire Maintenance Fund 137 List of Registered Insurance Companies 145 List of Registered Reinsurance Companies 146 List of Registered Broking Companies NATIONAL INSURANCE COMMISSION Welcome We welcome you to the 2019 Annual Report of the It is important to note that the following Companies Insurance Industry in Ghana. The purpose of the report did not submit their audited annual reports within the is to provide an overview of the Insurance Industry as statutory time-frame and as of the time this report was well as the activities of its Regulator. compiled. Their information and data as contained in this report are, therefore, based on their fourth quarter Unless otherwise stated, all the information in this report unaudited financial statements. The appropriate are based on the audited financial statements of the regulatory sanctions have been applied to these firms National Insurance Commission (NIC), the (Re)Insurance accordingly. Companies and the (Re)Insurance Intermediaries as at the end of 2019. Table 1: Firms whose information are based on unaudited financial statements Non-Life Insurers Life Insurers Insurance Brokers Heritage Insurance Company Limited Allianz Life Company Limited Ideal Insurance Brokers Multi Insurance Company Limited Vanguard Life Assurance Company Glow Insurance Brokers Limited Vanguard Assurance Company SIC Life Insurance Company Ltd. Premier Brokers and Consultant Limited Limited RCH Loss Adjustors Limited Risk Solution Limited The Commission continues to have an open door pol- about the Insurance Industry. The Commission also icy towards the views, concerns and suggestions from publishes quarterly updates on the insurance industry stakeholders and Industry participants on how to im- on its website - www.nicgh.org. prove and build a robust and competitive Insurance Industry. One of the means through which this engage- Whereas the information contained in the Annual ment is achieved is through provision of regular data on Report are based on audited financial statements, the the sector. It is worth pointing out that this publication quarterly summaries are based on unaudited quarterly is part of the suite of information produced by the NIC information submitted by Insurance Companies and Intermediaries. 2019 Annual Report of the Insurance Industry, Ghana 4 NATIONAL INSURANCE COMMISSION Foreword Even though COVID-19 is named after the year under come up with measures to help mitigate the impact of review, 2019 escaped the brunt of the pandemic. The these issues. impact of COVID-19 will be apparent in 2020 and its consequences may be with us for the next few years. Whilst there are some standard insurance policies COVID-19 is just one of many risks that has made the that can be developed to suit and extended to cover world realise the impact of the many uncertainties risks such as pandemics, these policies are mainly around us. Given how interconnected the world is, tailored at the larger companies and institutions. The pandemics and economic downturns have greater pandemic offers all stakeholders of the Insurance probability of occurring with most economies bearing Industry an opportunity to have a rethink of the possible the brunt. This uncertainty is likely to be further contributions we can make to result in a more resilient exacerbated through climate change and its attendant society. variability in weather patterns. Some countries have made greater use of the principles The COVID-19 pandemic has brought into sharp focus, of risk management and Insurance. Their governments, the importance of risk management for countries, both central and local, produce risk registers that set companies, families and individuals. Given that out the key risks they are exposed to as well as how Insurance and risk management are bedfellows, the they will seek to address them. This is the direction that current heightened state of awareness of risk offers we, as Insurance and risk management professionals, opportunities that the Insurance Industry needs to take should use as a guide for our companies, customers and advantage of. society. Through our engagements with clients, there is a need to present a holistic picture of the universe of The impact of the pandemic will be peculiar to each risks they are exposed to, and advise on the spectrum company. However, it is likely to be a combination of the of risk management activities they can take to address following: these, which may include insurance. 1. Changes in demand patterns: the key This approach, invariably is more time-consuming consideration will be the medium to long term and expensive. However, it will showcase the value we effects of the pandemic on the specific demand bring to businesses and society as opposed to society’s of a company and its products and services perception of the Insurance Industry, as being only 2. Reduced footfalls: companies that depend interested in collecting premiums. With this approach, significantly on sales generated through face- we will be able to build long-term relationships that will to-face interactions may witness significant be more profitable and beneficial to all stakeholders in reductions in sales. the long run. 3. Supply chain disruptions: the pandemic may result in supply chain disruptions that could To this end, there is a need for the following: have knock-on effects on other businesses. 1. Insurance practitioners need to be aware 4. Living with COVID-19: companies will incur of market developments, both locally and additional costs of implementing protocols to internationally, in risk management and minimise the likelihood of their customers and Insurance. This will help influence the risk staff contracting COVID-19. mitigation options they can present to their 5. Need to work remotely and increase in clients; absenteeism: increased frequency in working 2. Insurance practitioners need to know their remotely will have cybersecurity risk and clients and understand their needs. This means productivity implications as well as impact on understanding the nature of their businesses the well-being of employees. and processes. This is the only way Insurance 6. International and local travel restrictions practitioners can have a view of the entirety of – restrictions on travel will have significant risks they face. impact on the hospitality and tourism sectors. 3. Insurance practitioners should actively engage What is Expected of Insurance Companies government and civil servants on policy issues, especially where risk management and (Re)insurers and (Re)insurance intermediaries are not Insurance ideas can be infused to help produce only exposed to the above challenges, but they are also a more robust policy. expected to help other companies and organisations National Insurance Commission 5 NATIONAL INSURANCE COMMISSION Foreword In upholding the above, we are assured that we will insurance needs of their current and prospective clients. be better prepared for the very uncertain future that Some of the key benefits of research and data analytics lies ahead of us. This is particularly important given are: the potential for non-traditional operators to enter the Insurance market and cause market disruption. • better targeting of customers and engagement A number of commentators have discussed the whilst on cover possibility of Big Tech1 entering the Insurance space. • improved matching of customers and the most In addition to this, there are InsureTech2 firms who seek appropriate product design to efficiently undertake parts of the insurance process, • improved risk assessment, underwriting and such as underwriting, product development or claims pricing administration. • better claims management, including identification and avoidance of fraud. These challenges make it important that as an Insurance Industry, we get to know our customers better and These benefits offer a useful opportunity for the make better use of the valuable data that we have Insurance Industry to increase the uptake of insurance on customers. We need to get to a point where every which will be beneficial to all the stakeholders in the Insurance company and intermediary has a Research Insurance Industry in particular and the economy as a Unit that will continually seek to gain insight into the whole. data that the entity has as well as get to understand the 1 Big Tech refers to large technology firms such as Facebook, Amazon, Google etc 2 InsureTech refers to the use of technology to develop and provide insurance solutions 2019 Annual Report of the Insurance Industry, Ghana 6 NATIONAL INSURANCE COMMISSION Chairman’s Report Experiences in the Financial Services Sector and their impact on the Insurance Industry In 2019, Bank of Ghana (BoG) and the Securities & Exchange Commission (SEC) revoked the licences of hundreds of financial institutions ranging from; Savings and