Impact of COVID-19 on the Ghanaian insurance sector

The report details how COVID-19 disrupted the Ghanaian insurance sector, citing operational challenges due to lockdowns, financial risks from declining premium income and volatile investment assets, and the regulatory response of the National Insurance Commission (NIC). It highlights a shift toward digitalization and the broader economic downturn in Ghana, including a GDP growth estimate reduction from 6.8% to 2.6% for 2020.

• COVID-19 containment measures disrupted the insurance value chain, specifically hindering agent and broker-driven sales due to a lack of in-person interaction and causing policy lapses as customers struggled to pay premiums.
• The financial stability of Ghanaian insurers is threatened by a high reliance on investment income in a weak environment, with specific risks associated with government debt sustainability and a 200 bps reduction in short-term instrument returns requested by the government.
• The National Insurance Commission (NIC) faced operational disruptions, including the closure of offices in Accra and Kumasi, and responded by extending reporting deadlines and focusing on business continuity plans.
• The pandemic created a reputational risk for the industry, which insurers attempted to mitigate through donations of USD 190,000 to the government’s COVID-19 Trust Fund and by offering special life insurance for healthcare workers.
• The broader Ghanaian economy suffered significant shocks, with the 2020 GDP growth estimate falling from 6.8% to 2.6% and inflation rising to 11.3% in May 2020.
• Specific economic sectors in Ghana were heavily impacted: the tourism industry saw 25% of accommodation facilities shut down, and the energy sector experienced delays in projects valued at approximately USD 324 million.

APA

FSD Africa (2020). Impact of COVID-19 on the Ghanaian insurance sector. https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Ghanaian-insurance-sector-19.10.20-1.pdf

Chicago

FSD Africa. Impact of COVID-19 on the Ghanaian insurance sector. 2020. https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Ghanaian-insurance-sector-19.10.20-1.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Impact of COVID-19 on the Ghanaian insurance sector |date=October 2020 |url=https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Ghanaian-insurance-sector-19.10.20-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2020impact, author = {{FSD Africa}}, title = {{Impact of COVID-19 on the Ghanaian insurance sector}}, institution = {FSD Africa}, year = {2020}, month = oct, url = {https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Ghanaian-insurance-sector-19.10.20-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }