Ethiopia Insurance Corporation makes strides in risk management and growth

Image of the CEI

The Ethiopian Insurance Corporation (EIC) reports an increase in its risk management capacity, surpassing 6.2 trillion birr in the first nine months of the current Ethiopian fiscal year. This marks a 50% increase over the same period last year.

This achievement is the result of extensive reform initiatives undertaken by the EIC. These reforms focused on expanding the corporation’s service offerings, modernizing its operations, and making insurance more accessible to the public.

The positive impact is evident across the board. EIC collected 7.6 billion birr in premium income, an increase of 33% compared to last year. In addition, the corporation paid 2.2 billion birr in compensation and achieved a record pre-tax profit of more than 1.2 billion birr.

However, CEO Netsanet Lemesa recognizes the current challenges in making comprehensive insurance accessible to all. Limited public awareness, slow technology adoption, and lack of attention to low-income populations are obstacles that must be addressed.

Other complexities include compliance with mandatory declarations and shortages of spare parts in the vehicle insurance market. To effectively manage current risks and claims costs, Netsanet emphasizes the need to make appropriate adjustments to insurance premiums.

Looking ahead, the establishment of an independent commission to regulate the insurance sector is expected to provide much-needed support and address industry-wide challenges.

Source: Ethiopian News Agency