Ghanaian Insurance Industry Database
The Ghanaian insurance sector is rapidly expanding...
...however there is limited ability to analyse the risks associated with the markets being covered and the potential losses that could be incurred. Also, products on offer are mainly tailored for the relatively well off, meaning coverage extends to less than 2% of the Ghanaian population.
ProMiGH (Promoting Microinsurance in Ghana) is a partnership between Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and Ghana's National Insurance Commission (NIC) which actively supports insurance companies who cater for low income markets, assisting them in improving their services and product variety. ProMiGH has identified that without improved technical and actuarial capacity, further expansion in the Ghanaian insurance sector will be seriously limited. Development in this area will provide the industry with a greater understanding of the risks it covers, it will enable policy pricing that better reflects the risks being covered and help industry define appropriate reserving levels.
Currently there are very few qualified actuaries available in Ghana, so to improve the technical and actuarial capacity in Ghana you first need to provide a platform that allows educational establishments and the insurance industry to train and produce qualified actuaries. However, developing actuarial capacity involves more than just developing the actuaries themselves, once in place they need to have access to the tools and data that will enable them to undertake actuarial activities and add real value to the industry. This is where the Ghanaian Insurance Industry Database project comes in.
The Ghana Insurers Association (GIA), NIC and GIZ have partnered with us to develop a national, industry wide Ghanaian Insurance Industry Database (GIID) for Ghana. The GIID, is being developed using our open source OpenActurary platform.
The GIID will provide the insurance industry in Ghana, for the first time, market wide risk data including existing policy risk information, claims information and any other useful data relating to market risks. Policy and claims data will be collected from all insurers and stored in a central repository for actuaries to access and analyse, along with any other data that may be useful for analysing market risks. For the purposes of actuarial analysis, all data will have any identifying factors removed before being stored to protect individuals personal information and insurers identities from competitors, leaving raw statistical data vital to understanding market risk and future trends. Moving forward additional facilities will be developed to help the industry work together to tackle fraud, monitoring suspicious claim and policy purchasing related activity.
One benefit the GIID will bring, for example, will be the development and provision of Ghanaian specific mortality statistics. This will enable insurers to develop life products that reflect the needs of, and are priced appropriately for, families who have never previously had access to or enjoyed the safety net of insurance.
With high quality data, insurers will be able to write sustainable business for all sorts of classes, from crop protection to medical cover, flood to fire damage; the reach of insurance will be much greater than ever before, and those poorest communities and families will start to see real benefits. The GIID will help the entire Ghanaian insurance industry develop more robust and stable business models, for both traditional and microinsurance lines of business.
If you want to find out more, get involved, or see potential for this technology elsewhere, please don’t hesitate to contact us.
About the Author
Matthew is a founder of OpenUnderwriter and has over 20 years’ experience working in the Insurance sector. He has extensive experience in delivering complex solutions in both general and commercial lines for Lloyds and London markets working with companies such as Talbot Underwriter, Brit and Catlin. Matthew has been at the forefront of the design and overall direction of the OpenUnderwriter suite of products. Matthew is also an active member of the microinsurance community and has been involved in a number of major projects in developing countries across the world.