Published Paper Details:

The National Insurance Commission (NIC) in Ghana is legally mandated to regulate insurance operations, focusing on the impact of insurance on the economy. However, NIC reports show insurance penetration rates of less than 2% in 2020, 2021, and 2022, compared to global and South African averages. This low penetration rate is a significant issue, highlighting the need for improved insurance coverage and regulation. Insurance in Ghana is not contributing effectively to the GDP, leading to low insurance penetration rates. The formal sector, which constitutes 20% of the workforce, is well-structured, but insurers have neglected the informal sector, which has over 80% of the workforce. This results in low insurance penetration and density compared to countries like South Africa. The National Insurance Commission (NIC) has identified micro or inclusive insurance as a tool to increase insurance penetration and density in Ghana. Initiatives aim to stimulate uptake and address challenges in this important sector. This study evaluates the impact of inclusive insurance service delivery in Ghana, focusing on insurance density, penetration, poverty alleviation, economic growth, and development, to determine the sustainability of NIC's position in increasing insurance penetration. Findings from the time series analysis, correlational analysis, and regression analysis were provided by the quantitative data analysis. The study's correlational analysis revealed a significant positive correlation between the economic variables (GDP, population of the informal sector, and poverty reduction) and inclusive insurance (GWP). However, there was only a marginally favorable correlation between GWP and economic expansion. More than 60% of the fluctuation in GWP may be linked to the variation in the corresponding economic variables, according to the coefficient of determination (R2) between GWP and the economic variables (GDP, population of the informal sector, and poverty reduction). Conversely, there was little correlation found in the coefficient of determination between GWP and Economic Growth. In effect, there was consistency in results in terms of the ability of inclusive insurance (GWP) to increase GDP significantly. Inclusive insurance can increase insurance penetration in Ghana by contributing significantly to the Gross Domestic Product. This can be achieved by deepening insurance education and widening its reach. Service providers should offer simple, flexible, and affordable products to meet different sub-groups in the informal sector. Based on the results obtained, the study recommends that inclusive insurance should be prominently featured in the National Financial Inclusion Development Strategy to formalize the informal economy. Collaborations among industry players and the National Insurance Commission should expedite the licensing regime.