Insurance sector adjusts investment strategies amid DDEP impact

Insurance companies in Ghana have reduced investments in Government of Ghana (GoG) and Bank of Ghana (BoG) securities to mitigate risks associated with the Domestic Debt Exchange Programme (DDEP).

The non-life insurance sector’s holdings in these securities dropped by 13% (to 27%) in 2023, while life insurance holdings fell by 9% (to 40%).

Instead, insurers have diversified their portfolios, increasing allocations to fixed deposits, listed securities, and property investments.

Despite these shifts, the National Insurance Commission (NIC) remains optimistic about industry stability, with efforts underway to support compliance with IFRS 17 capital requirements.