The National Insurance Commission (NIC) of Ghana has granted sandbox innovation licenses to five pioneering insurtech companies in a strategic move to boost the country’s low insurance penetration rate. This initiative provides these companies a one-year period to test innovative insurance products, potentially paving the way for full licensing if they succeed in enhancing access and appeal to broader demographics.
The newly licensed insurtechs bring diverse solutions to Ghana’s market, each designed to simplify and modernize the insurance experience:
- Figtech (MyFIG) Limited – An insurance aggregator focused on streamlining the insurance process, from purchasing policies to managing claims.
- Moovon Insure – An online platform offering pay-as-you-go premium payments, providing flexibility to users.
- Holland Insurance, Inc. and eTap Inc. (Nigeria) – A collaboration using mobile telematics to support flexible premium payment models.
- Trade Guarantee Limited (TGL) – Creators of ‘Sorpi Sorpi,’ a telematics-based motor insurance add-on service.
- Red Pear – An aggregator platform delivering a variety of insurance options from multiple providers.
This project is supported by FSD Africa’s Bimalab program, an initiative promoting insurtech innovation across 16 African countries. Since its inception, Bimalab has accelerated over 100 insurtech projects, catalyzed $35 million in funding, and introduced insurance coverage to more than 5 million people across the continent.
Ghana’s insurance market has 26 non-life companies, 18 life companies, three reinsurance firms, 113 brokers, and around 5,000 agents, with a combined asset base of GH¢17 billion ($1.4 billion) as of 2023. However, only 2% of Ghana’s population currently holds insurance coverage, signaling untapped potential for growth.
The Insurance Act 2021 (Act 1061) aims to strengthen corporate governance and promote insurance access for low-income earners, farmers, and informal sector workers. By introducing new licenses for insurers and reinsurers focused on innovation, the Act supports a regulatory sandbox framework, encouraging companies to test novel insurance models tailored to Ghana’s evolving market needs.
Ghana’s NIC hopes that these regulatory reforms will modernize the insurance sector, expanding its accessibility and reach across the country.
