Page 19 - The Insurance Times October 2024

expected to reverse in the near future, The launch is part of the Inclusive In- tion (GIA), acknowledged that while
even if market conditions change. surance Certification Programme, a Ghana was the first country to estab-
Primary insurers are now retaining collaborative effort between the lish a framework for inclusive insur-
UNDP/IRFF and the Ghana Insurance ance, progress has been slow. How-
more risk associated with secondary
College, supported by the NIC. The ever, he expressed optimism that the
peril events, while reinsurers continue
program aims to build capacity and partnership between the NIC and
to provide substantial coverage for the
most severe catastrophes. Losses in the raise awareness of inclusive insurance UNDP/IRFF would improve access to
first half of 2024 were driven by me- throughout Ghana, targeting inclusive insurance for all Ghanaians.
dium-sized events such as convective underserved populations. Dr. Abdul-Razak Saeed, Head of Envi-
storms in the United States. Micro and inclusive insurance products ronment and Climate Cluster at UNDP
are specifically designed to provide Ghana, added that inclusive insurance
Reinsurers’ efforts to reduce exposure
low-income earners, such as market has the potential to play a crucial role
resulted in these losses being absorbed
women, artisans, and food vendors, in mitigating the impacts of climate
primarily by primary insurers. Adjust-
with financial protection against unex- change and related challenges, making
ments such as higher attachment points pected events. These products are tai-
and lower aggregate covers limited the lored to meet the unique needs of it even more essential for vulnerable
triggering of reinsurance payments. communities.
these groups, offering them access to
The reinsurance sector has benefited insurance coverage that has tradition- Global Reinsurance Market
from strong profitability in recent ally been out of reach.
years, driven by significant increases in Expected to Grow by 2-3%
The insurance clinics, which will run
property catastrophe pricing. Although from September to November, are Over the Next Three Years:
prices may ease moderately, reinsurers scheduled to educate traders in loca-
are expected to maintain tight limits tions including Ada, Sege, Kasoa, Munich Re
on lower layers of natural catastrophe Galilea, and Prampram. The goal is to The global reinsurance market is pro-
coverage, avoid large aggregate cov- inform participants about the impor- jected to grow by 2-3% annually over
ers, and uphold disciplined underwrit- tance of insurance as a tool for pro- the next three years, according to
ing practices. tecting their livelihoods and busi- Munich Re, one of the largest reinsurers
in the world. Speaking at the 66th
This cautious stance is further reinforced nesses. Rendez-Vous de Septembre in Monte
by limited new market capacity and ris- During the launch, Acting Commis- Carlo, Munich Re highlighted that de-
ing risks associated with climate change sioner of Insurance, Michael Kofi spite the promising outlook, the market
and growing property exposures. Andoh, emphasized the importance of remains challenging. The anticipated
educating informal sector workers growth, adjusted for inflation, would
Micro Inclusive Insurance about the risks they face and how in- bring the reinsurance sector on par
Clinic Launched to Support surance can help mitigate those risks. with the primary insurance market.
He pointed out that over 70% of
Traders and Artisans in Ghana’s workforce operates within the Munich Re noted that the most signifi-
cant growth is likely to occur in the Asia
Ghana informal sector, which is often Pacific and Latin America regions,
underserved by traditional insurance
A new initiative aimed at promoting while growth in more developed mar-
the benefits of insurance to traders products. He highlighted the need for kets, such as the US and Europe, may
and artisans in the Accra Metropolitan more targeted insurance solutions to be slower.
address the specific needs of this seg-
Area (GAMA) has been launched in ment. Andoh also noted that micro During the conference, the company
Accra, Ghana. This effort, spear- and inclusive insurance could enhance identified several key areas requiring
headed by the United Nations Devel- the creditworthiness of farmers and specialized risk management, includ-
opment Programme (UNDP) Insurance other informal workers, encouraging ing natural catastrophes, casualty busi-
and Risk Finance Facility (IRFF), the ness, claims inflation, and cyber risks.
National Insurance Commission (NIC), market traders, artisans, and vulner-
and the Insurance Awareness Coordi- able groups to adopt insurance as a key In the area of natural catastrophes,
nators' Group, forms part of a broader risk management tool. Munich Re's data indicates an increas-
campaign to expand access to inclusive Dr. Kingsley Kwabason, Chief Executive ing trend in insured losses, driven by
insurance in the country. Officer of the Ghana Insurers Associa- more exposed assets. While large-scale

The Insurance Times October 2024 17