The study examines how the frequent occurrence and severity of extreme events affect the
demand, supply and the profitability of insurance companies in Ghana. Secondary data
collected from NIC, NADMO, Ghana Statistical Service and Open Data Initiative on eight
classes of business as well as thirteen life and non-life companies over the period 2007 –
2016 was analysed using a panel regression method.
The results indicated that the unexpected frequency of extreme events negatively affected
both the demand and supply of insurance but had no influence on insurers’ profitability.
Also, the unexpected severity of extreme events significantly decreased the profitability of
life insurers but had no effect on non-life insurers.
Therefore other avenues, such as public awareness and education can be explored in order to
increase insurance demand and ensure the availability and affordability of insurance to all.
Insurers are also encouraged to consistently assess the exposures of their investments, capital
and reserves to extreme events.
Keywords and phrases: extreme events, panel regression, profitability, reserves, severity,
Eastern Network, L (2021). Impact of Extreme Events on the Insurance Market in Ghana. Afribary.com: Retrieved April 10, 2021, from https://afribary.com/works/impact-of-extreme-events-on-the-insurance-market-in-ghana
Library, Eastern Network. "Impact of Extreme Events on the Insurance Market in Ghana" Afribary.com. Afribary.com, 03 Apr. 2021, https://afribary.com/works/impact-of-extreme-events-on-the-insurance-market-in-ghana . Accessed 10 Apr. 2021.
Library, Eastern Network. "Impact of Extreme Events on the Insurance Market in Ghana". Afribary.com, Afribary.com, 03 Apr. 2021. Web. 10 Apr. 2021. < https://afribary.com/works/impact-of-extreme-events-on-the-insurance-market-in-ghana >.
Library, Eastern Network. "Impact of Extreme Events on the Insurance Market in Ghana" Afribary.com (2021). Accessed April 10, 2021. https://afribary.com/works/impact-of-extreme-events-on-the-insurance-market-in-ghana