Addis Ababa – Senior executives in Ethiopia’s insurance sector are urging the government to prioritize the development of the industry, highlighting its crucial role in driving economic growth and supporting national development initiatives.
In an exclusive interview with The Ethiopian Herald, Gizeaddis Balemual, Chief Strategy Officer at the National Insurance Company of Ethiopia (NICE), emphasized the need for the insurance industry to receive policy attention equivalent to that given to banks and other financial institutions. He noted that while Ethiopia was the first African nation to establish insurance services, the sector remains underdeveloped.
Currently, only 18 insurance companies operate in Ethiopia— a modest figure considering the country’s large and growing population. Gizeaddis pointed out that this limited market presence reflects broader structural issues that hinder the sector’s expansion.
Although the creation of Ethiopia Reinsurance in 2016—a collaborative venture between banks and insurers—was a significant milestone, local insurance firms continue to depend heavily on foreign reinsurers. This reliance results in the loss of millions of dollars in foreign exchange annually.
Echoing similar concerns, Malede Adugna, Finance and Investment Director at Nib Insurance Company, called for increased government efforts to enhance domestic reinsurance capabilities. He also stressed the importance of investing in capital, skilled manpower, and technological infrastructure to ensure sustainable growth across the insurance sector.
Industry leaders argue that bolstering the insurance sector could unlock substantial economic benefits and help build financial resilience within the country.
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