Initial Market Assessment : Country Scoping Note--Ghana

Initial Market Assessment : Country Scoping Note--Ghana

Donors could assist in clarifying the role, building the capacity, and potentially helping to secure funding of key disaster risk management organizations in Ghana. Engagement in Ghana to develop private sector property catastrophe risk and agriculture insurance should be seen as a medium term engagement. Banking penetration is low, as is insurance and micro-insurance penetration, even when compared to regional countries. That said, Ghana has seen rapid growth in the micro-insurance market with the number of people covered doubling in the last 3 years. The insurance industry, while competitive, has struggled in recent years with profitability, indicating there could be need for insurance capacity building and improved governance. There may be however opportunities for targeted investments in the northern part of the country more prone to drought, aimed at increasing disaster resilience among vulnerable population using market-mediated solutions. Links could be explored between social welfare programs and market-mediated insurance solutions. For example, the government plans to expand the coverage of the Livelihood Empowerment against Poverty Program (LEAP) by over ten-fold in the next three years. These mechanisms could scale up programs against post flood events or drought events in the north. Donors could support the integration of market-mediated insurance solutions within the social welfare programs. Using local insurance capacity to bear some of the risk and develop the insurance products could also be investigated. Such mechanisms delivered through social welfare programs will create a critical mass of policyholders, which could spur the development of commercial agriculture insurance.

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Bibliographic Details
Main Author: World Bank
Format: Report biblioteca
Language:English
en_US
Published: Washington, DC 2013-09-22
Subjects:LIVING STANDARDS, FLOODING, TOTAL COST, EARLY WARNING SYSTEMS, ALLOWANCE, RISKS, REGULATORY FRAMEWORK, ECONOMIC GROWTH, INSURANCE SUPERVISORS, STORM, EARLY WARNING, RISK REDUCTION, FINANCIAL MANAGEMENT, STOCK, INCOME, INTEREST, LIFE INSURANCE, GOVERNMENT FUNDING, GOVERNMENT SPENDING, EXCHANGE, INSURER, PROGRAMS, INFORMATION, DEVELOPING COUNTRIES, HEALTH INSURANCE, INSURANCE CORPORATION, WELFARE, INSURANCE SOLUTIONS, CAPACITY BUILDING, PRICING, MODELS, DISASTER, PRIVATE INSURANCE, CASH TRANSFER, MARKET INFRASTRUCTURE, DISASTER PREVENTION, PENSION, DISASTER EVENTS, INSURANCE SCHEME, EARTHQUAKES, INSTRUMENTS, INSURANCE MARKET, INSURANCE COMPANY, BUDGET, CATASTROPHE INSURANCE, DISASTER RELIEF, CROP INSURANCE, REINSURERS, RIOT, RELIEF, DISASTER RESPONSE, FEASIBILITY, INSURANCE MARKETS, INSURANCE PRODUCT, PUBLIC FUNDS, FLOODS, DEBTS, INSURANCE REGULATIONS, LOCAL INSURANCE COMPANY, NATURAL DISASTERS, MARKETS, DEBT, LOCAL GOVERNMENT, CAPITAL REQUIREMENTS, PUBLIC FINANCE, DISASTERS, INSURERS, SOCIAL SECURITY, EMERGENCY RESPONSE, FIRE, FARMERS, CONVENTIONAL INSURANCE, RESERVES, INSURED LOSSES, FINANCE, PUBLIC INVESTMENT, BANKS, REINSURANCE, REGULATIONS, HUMAN CAPITAL, EMERGENCY, EARTHQUAKE, VALUE OF ASSETS, FOOD SECURITY, MICRO- INSURANCE, DISASTER RISK, CLIMATE CHANGE, DROUGHT, INSURANCE SCHEMES, INSURANCE COVER, INSURANCE PRODUCTS, VALUE, CASH PAYMENTS, BANK, INSURANCE LAW, DISASTER RISK FINANCING, AGRICULTURAL INSURANCE, CLIMATE, DEMAND, SAFETY NET, BAILOUTS, DAMAGE, PROPERTY, INSURANCE INDUSTRY, MICRO-INSURANCE, DISASTER MANAGEMENT, HUMAN CAPITAL DEVELOPMENT, MARKET, EXPLOSION, FLOOD, CREDIT GUARANTEE, REGULATION, POLICY, SOLVENCY, INSURANCE, INSURANCE PREMIUMS, ECONOMIC DEVELOPMENT, TIDAL WAVES, MARKET SHARE, SECURITY, STOCK EXCHANGE, HURRICANE, INVESTMENT, RISK, SHARE, INDEMNITY, WARNING SYSTEMS, POVERTY, ALLOCATION, FINANCIAL CAPACITY, UNDERWRITING, INSURANCE SECTOR, DISASTER RISK REDUCTION, DECENTRALIZATION, LAW, FINANCIAL SUPPORT, INVESTMENTS, RISK MANAGEMENT, INSURANCE COMPANIES, SAFETY, COVERAGE, INSURANCE PENETRATION, LAND MANAGEMENT, PRICES, GUARANTEE, BENEFITS, REINSURER, INVESTING,
Online Access:http://documents.worldbank.org/curated/en/2015/07/24773651/initial-market-assessment-country-scoping-note-ghana
http://hdl.handle.net/10986/22430
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Summary:Donors could assist in clarifying the role, building the capacity, and potentially helping to secure funding of key disaster risk management organizations in Ghana. Engagement in Ghana to develop private sector property catastrophe risk and agriculture insurance should be seen as a medium term engagement. Banking penetration is low, as is insurance and micro-insurance penetration, even when compared to regional countries. That said, Ghana has seen rapid growth in the micro-insurance market with the number of people covered doubling in the last 3 years. The insurance industry, while competitive, has struggled in recent years with profitability, indicating there could be need for insurance capacity building and improved governance. There may be however opportunities for targeted investments in the northern part of the country more prone to drought, aimed at increasing disaster resilience among vulnerable population using market-mediated solutions. Links could be explored between social welfare programs and market-mediated insurance solutions. For example, the government plans to expand the coverage of the Livelihood Empowerment against Poverty Program (LEAP) by over ten-fold in the next three years. These mechanisms could scale up programs against post flood events or drought events in the north. Donors could support the integration of market-mediated insurance solutions within the social welfare programs. Using local insurance capacity to bear some of the risk and develop the insurance products could also be investigated. Such mechanisms delivered through social welfare programs will create a critical mass of policyholders, which could spur the development of commercial agriculture insurance.

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