Former Finance Minister, Dr. Kwabena Duffour, has described as regrettable, the low penetration rate of insurance in Ghana, at a time when the issue of financial inclusion is being heralded across the globe.

“I sincerely believe that banking and insurance form the two sides of the finance coin, so, their development ought to be equally matched. Unfortunately, in Ghana the insurance side of the coin is weak,” he said as the keynote speaker at the 38th Management Day Celebration of the University of Ghana Business School.

“Majority of Ghanaians have no bank accounts, neither do they have any insurance policies. The percentage of the population with no insurance policy is even much higher.”

A huge chunk of the populace, he said, still find themselves outside the financial system, a situation that is not encouraging.

“Most people in our country would rather accept more readily to have a bank account than to have an insurance policy,” he said, indicating that the issue of financial inclusion cannot be addressed entirely when the insurance sector is isolated.

The event, which seeks to help shape the national development discourse by bringing experts in academia and industry together to dialogue, was held under the theme: ‘Finance for Inclusive National Development’.

According to the former Finance Minister, the low patronage of insurance schemes is mainly due to the low level of insurance literacy in the country, as well as the lack of trust, and inadequacy of financial resources.

He therefore called for a clear national plan to ensure more insurance coverage which will push penetration high, and increase financial inclusion in the country.

Measured as a percentage of GDP, insurance penetration currently remains below two percent, which underpins the vast but yet to be exploited potential.

According to the latest Oxford Business Group Report, the value of the country’s insurance market is projected to reach S$600 million in 2018, from US$400million in 2014, based on a projected annual growth rate of 8.5percent.

The report also cited an EY January 2016 survey as saying, Ghana has the highest potential for growth in insurance premiums, and the least in terms of risk in sub-Saharan Africa, which points to a sector with a lot potential that is waiting to be exploited.