The Market Structure of the Ghanaian Insurance Market

Abstract

The insurance industry offers the Ghanaian economy a prospect to assemble enormous native savings for long-term, indigenous currency investment and provides an opportunity to generate employment. Insurance enhances the confidence of households, including the amassing of long-term savings against the loss of wage earners and sinking their reliance on community welfare provisions. This paper uses both SCP Paradigm and a quantitative research method; and aims to elucidate the existing procedures of measuring market structures and demonstrate the use of these measures for the selected industry. Using market share, concentration ratios, and Herfindahl-Hirschman index it was revealed in this research that a few large firms continue to dictate the market. Nonetheless, there are no monopolistic inclinations in the Ghanaian insurance market and firms are at liberty to compete with each other for market shares. This paper concludes that, the Ghanaian Insurance industry has undergone a structural change from