Ghana’s Low Insurance Penetration Weakens Sector
Ghana’s insurance sector is facing mounting pressure as persistently low penetration cripples its ability to pay claims promptly and build public trust. Abuakwa South MP, Dr. Kingsley Agyemang, warns that without broader participation, the industry risks a cycle of mistrust that weakens growth. “Insurance thrives on the principle of large numbers,” Dr. Agyemang explained during an interview on Adom TV’s Evening News. “When many people contribute, the pool can easily pay the few who make claims. But when participation is low, even routine claims become a burden.” To illustrate, he likened the situation to flipping a coin: thousands of flips produce predictable results, but just a handful yield erratic outcomes. “Insurance works the same way—the larger the pool, the steadier the payouts,” he noted. The MP cautioned that weak uptake makes it harder for insurers to build strong, diversified portfolios. […]