The established insurance broking firms are still dominating Ghana’s insurance intermediary space, going by the recent quarterly released of unaudited financials for 2020 by the regulator.
Indicated that a total of 79 broking firms earned about GH¢112,517,741 in 2020 as against GH¢134,190,420 in 2019. The 2020 performance highlights the longer-term trends transforming insurance broking in Ghana, which indicates how brokers will recover in the coming years.
The performance of insurance brokers will henceforth be assessed by how sophisticated the broking firm environment appears in the era of fintech and human capital looks.
Indications are that broking firms that make up the top-10 are mostly new generation firms which B&FT tags as politically established ones. These firms were set-up in the early 2000s and latter part of the 1990s. They dominated the composition of the top-10 performing companies that year, 2020.
Climbing toward the top-10 are some other dynamic companies like Allstar Insurance Brokers which raked in about GH¢2,837,546; and Safe Guard Insurance Brokers – GH¢2,226,339. Other high-flying companies include: Arrow Class Insurance Brokers – GH¢1,144,087; Boaitey and Associates – GH¢1,040,177, Crown Insurance Brokers – GH¢1,776,182; Olea M&G Insurance Brokers – GH¢1,346,698; and Progressive Insurance Brokers – GH¢1,772,365.
That indicates a good performance despite the global pandemic, the top-10 companies earned GH¢76,625,233 out of the total GH¢112,517,741 – representing 31.9% of the brokerage income earned.
The 10 top companies include: KEK Insurance Brokers – earning Gh¢27,236,169; Willis Towers Watson Ltd. – GH¢10,880,017’ Edward Mensah Wood – GH¢10,802,802; Horizon Insurance Brokers – GH¢5,772,346; Ascoma Insurance Brokers – GH¢5,189,424; Irisk Management Ltd. – GH¢3,931,814; Risk Management and Advisory Services – GH¢3,443,165; Safety Insurance Brokers – GH¢3,416,551; Midas Insurance Brokers – GH¢3,067,719; and Tristar Insurance Services Ltd. – GH¢2,885,226.
Surprisingly, in this top-10 list there are a few old companies which were set up in the early 1980s and 90s. All others are companies set up in the late 1990s stretching to early 2000s.
The figures presented are unaudited and were extracted from quarterly returns submitted to the NIC in accordance with Act 724 of 2006. No adjustment has been made to the submitted data except rounding-off the figures to the nearest whole number.