State-owned Ethiopian Insurance Corporation (EIC) is expected to be among the first companies to be listed on the country's stock exchange which is scheduled to start operations before the end of this year.
Inflation is taking a toll on the insurance industry, particularly on motor insurance, which accounts for over 70% of the market.
Ethiopian Reinsurance (Ethio Re) has a track record of adequate operating performance, demonstrated by a five-year (2019-2023) weighted average return on equity (ROE) of 16%, says AM Best.
Concerns are growing over the shortage of skilled professionals in the insurance sector in Ethiopia, as the government plans to open the sector up to foreign investors.
The UNDP has established an Insurance Risk Financing Facility (IRFF) to help communities and businesses in Ethiopia manage shocks.
The National Bank of Ethiopia (NBE), which is the country's central bank, has announced that an independent insurance regulatory agency will be established by June 2025 in what will be a game-changing development.
African Reinsurance Corporation has announced that it would lift partially its unilateral ban on the issuance of new political violence treaty (PVT) insurance cover for capital assets in regions in Ethiopia under a state of emergency.
The National Bank of Ethiopia (NBE) is working towards setting up an independent insurance regulatory body, focusing on promoting the insurance industry, according to Mr Solomon Desta, NBE deputy governor.
Amhara Bank, incorporated in June 2022, and other promoters are working to establish an insurance company in Ethiopia with a paid-up capital of ETB2bn ($37.7m), the largest amount of initial capital for a new insurer in the country.
Only nine of Ethiopia's 18 insurance businesses have paid 15% of the net income they reported in the previous fiscal year to purchase bonds from the Development Bank of Ethiopia (DBE), with the deadline set by the central bank approaching.