Abstract:
ABSTRACT
The most regrettable feeling by homeowners is to lose their shelter together with
its contents to perils such as fire, flood and burglary. Despite this uncertainty,
home insurance penetration in the insurance market to indemnify those affected
has persistently been poor. In Ghana, even though the demand and purchase of
insurance policy have seen considerable attention through new Insurance Act,
2021 (Act 1061) together with targeted public education to improve awareness
and confidence, within the insurance industry, there exist only 24 life insurance
companies, 29 non-life companies and 7000 insurance agents, recording an
extremely low percentage of insurance penetration. This study explores the
determinants of demand for homeowners’ insurance policy in the Ho
municipality as it seeks to establish socio-demographic and economic factors
resulting from risks associated with owning a home. Through descriptive
survey, research questionnaires were administered to a sample population of
400 respondents who were homeowners in the Ho municipality. A binary logit
model, which is a regression model was used to estimate the mode. Confirming
the results, the determinants of demand were identified as level of premium and
savings, market rate of interest and the age of a homeowner. The findings
unravelled notable reasons for low home insurance patronage by the general
public. It is anticipated that the outcomes will address the shortcomings by
relevant stakeholders in the industry.
