\nSheriff Abudu (2nd right), CEO of Impact Life Insurance and some directors of the company after unveiling the new entity <\/p>\n<\/div>\n
TWO companies, the Ghana Union Assurance (GUA) Life and Phoenix Life Assurance Company, have merged their operations into one entity to help increase insurance penetration in the country.<\/h2>\n
The new entity has been named Impact Life Insurance and was unveiled in Accra last Wednesday.<\/p>\n
The Chief Executive Officer (CEO) of Impact Life Insurance, Sheriff Abudu, described the unveiling of the newly merged brand as the most significant and historic one in Ghana\u2019s life insurance industry.<\/p>\n
He said the merger was the first in the industry meant to strengthen both corporate and micro insurance, solidify retail insurance and transform the sector with relentless creativity and innovation.<\/p>\n
Insurance penetration<\/strong><\/p>\n Mr Abudu said Ghana\u2019s insurance industry was one of the most attractive sectors in the country.<\/p>\n \u201cCurrently, overall insurance penetration in the country is around 1.1 per cent of gross domestic product (GDP) compared to about 2.8 per cent in Kenya and a whopping 17 per cent in South Africa,\u201d he said.<\/p>\n He explained that Life insurance penetration was less than 0.5 per cent of GDP, an indication of the growth potential that existed.<\/p>\n The MD of impact Life said the life insurance sector was also less dependent on entrenched brokers, with just eight per cent of life insurance distribution channels available compared to 44 per cent in the non-life insurance.<\/p>\n \u201cOur industry is also benefiting from two new regulatory developments \u2013 the expected passing of a new mandatory group life law requiring companies to procure life insurance policies for their employees and the commencement of annuities.\u201d<\/p>\n