There are strong indications that foreign-owned insurance companies may soon outnumber indigenous ones.
About 12 of the 39 companies doing business in the country have some form of foreign participation.
Within the past three years after the passage of a new Insurance Bill, Act 724 of 2006, seven new companies have been registered.
The companies are Industrial and General Insurance Company (IGI); International Energy Insurance Company (IEI); Equity Assurance; Regency Alliance; Capital Express Life; InterContinental WAPIC and NEM Insurance, all from Nigeria.
Contrary to the belief by Ghana’s insurance industry players that the market has been saturated, these foreigners still see the market as juicy.
But most stakeholders have called on the National Insurance Commission to stop the issuance of new licences.
The agitators say the market is too small for 39 companies to operate in. Importantly, too, there is no new business coming in.
Nevertheless, the few available are being scrambled for, resulting in underwriters undoing each other to clinch business.
These actions have resulted in rate undercutting by companies.
A B&FT investigation also revealed that apart from investors coming in to set up new firms, some of them are hurriedly buying companies that have been given licences.