There is a critical need for the Ethiopian government to attach importance to the insurance industry, on a par with the attention given to banks and other financial institutions, senior executives of insurance companies have said. This is because the insurance market plays a vital role in supporting national projects and pushing economic growth.
National Insurance Company of Ethiopia (NICE) Chief Strategy Officer Gizeaddis Balemual, said this in an exclusive interview with The Ethiopian Herald.
Despite Ethiopia being the first African nation to establish insurance companies, Mr Gizeaddis said that the insurance industry is significantly underdeveloped. With 18 insurance companies operating in the country, he stated that this is a small number relative to Ethiopia’s large population.
Despite the establishment in 2016 of Ethiopia Reinsurance, a joint venture between banks and insurance companies, local insurers still rely heavily on foreign reinsurers, resulting in millions of dollars flowing out of the country.
Separately, Nib Insurance Company’s finance and investment director Mr Malede Adugna stressed the need for the government to expand local reinsurance capacity to reduce foreign exchange outflow. He also emphasised the need for investment in capital, manpower, and technology across the insurance sector nationwide.
To read the original text, please click on this link.