The Impact of Emerging Regulatory Regime on the Private Health Insurance Industry in Ghana

Abstract

The study sought to examine how the current regulatory reforms in the insurance industry impact the services of insurance schemes in Ghana. The study used primary data comprising 60 employees in management positions in private health insurance companies in Ghana, and 5 personnel from the National Health Insurance Authority, the regulator. The employees were selected using purposive sampling technique, while the private health insurance companies that participated in the study were chosen using simple random sampling technique. Descriptive research, mean and standard deviation, as well as inferential statistics of ordinary simple linear regression analysis were used to analyze the data of the study. The results of the study revealed that the main reason for the current insurance regulatory framework in Ghana is to ensure safety and soundness of insurers; offer protection to consumers; bring sanity into insurance industry; promote best practices; mitigate industry associated risks, and to safeguard the interest of all stakeholders for socio-economic development. The findings of the study also revealed that the current insurance regulatory measures were established to manage systemic risks and market failures. The result of the study also revealed that the regulatory framework has both positive and negative impact on insurance companies’ activities in Ghana. Moreover, the findings of the study revealed that the regulatory challenges facing the insurers are logistical, education and training, human resource, legislative, and economic or financial ones. The results of the ordinary simple linear regression revealed that the regulatory challenges faced by insurers have a significant negative impact on the insurers’ overall satisfaction with the regulatory framework. Given these findings of the study, implication and recommendations are highlighted for policymakers, regulators and researchers.