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 insurance industry has been closed to foreign players for decades. With the liberalisation of the industry, local insurers are expected to face intense competition, reported Capital Ethiopia.
Addressing the issue, Bruh Finance, in collaboration with the Ethiopian Insurers Association, has launched a diploma course through the Chartered Insurance Institute, aimed at narrowing the skills gap in the sector. This programme is designed to provide international-level training to 50 insurance professionals, equipping them with the knowledge and skills necessary to compete in a more demanding market and to adapt to new technologies.
This initiative follows a successful training programme conducted by Bruh Finance several months previously, where over 70 insurance employees completed a 12-month certification course through the Chartered Insurance Institute. The new diploma programme will enhance the qualifications of those who have completed the certificate-level course.
In March 2024, the central bank — National Bank of Ethiopia (NBE) — was reported to be seeking to build domestic actuarial expertise to upgrade the insurance sector. Ethiopia lacks qualified actuaries. It taps foreign actuaries through reinsurers.
Mr Assegid Gebremedhin, CEO of At Insurance Broker and Consultant, said, “NBE requires actuarial consultation before approving products.”
With a population of more than 120m and the expansion of the insurance market, the need for actuarial capability in Ethiopia has become vital. The insurance penetration rate in the country is 0.3%.