Demand for life insurance in Ethiopia has shown a steady uptick due to rapid urbanisation and improvement in the livelihoods of people, Ethiopian Reinsurance has said.
This disclosure was made at the first National Life Assurance Summit organised by Ethiopian Re last month, with the theme “Breathing Life into the Life Assurance Business”.
Ethiopian Re's chairman Mr Hailemariam Assefa said that the number of people who need life insurance services in Ethiopia, particularly in urban areas, has been increasing over time, creating strong potential for the sector's growth, according to a report in The Ethiopian Herald.
He said however that life insurance penetration in the country and its contribution to the national economy have yet to reach the desired level. In his view, the limited attention that has been given to the insurance industry in general, and life insurance in particular, is the primary factor behind the insurance sector's underperformance.
Public Financial Enterprises Director with the Ethiopian Public Enterprise Holding and Administration Agency, Sewagegne Chanie, said that the agency planned to prepare a policy to address challenges in the life insurance sector.