Ethiopian Business Review

Fikru Tsegaye

Fikru Tsegaye

Fikru Tsegaye holds MBA in Marketing and MA in Human Resource and Organizational Dev’t. He is currently working at Ethiopian Insurance Corporation as Marketing and Strategic Management Team Leader. He can be reached at fikru.tsegaye@yahoo.com

Website URL:

Terrorism and Political Violence

Thursday, 15 February 2018 03:00 Published in View Point

Opportunity, Threat for Insurance?

No country in the world, however well protected, can consider itself immune from political violence. Terrorism is evolving fast as networks and cells continue to look at new methods to inflict damage and cause panic. Under the current circumstances, politically motivated attacks and civil unrest in Ethiopia keep threatening business organizations. As a result, companies look to insurance protection—primarily political risk and terrorism coverage—to manage the exposure. The current eruption of political violence in parts of Ethiopia and the adverse human and financial cost, coupled with the swelling tendency of threats, is pushing the risk into uncharted territory. 

Promotion Dilemma in Ethiopian Insurance Industry

Friday, 15 August 2014 03:00 Published in View Point

In the insurance industry, clients demand more choice, flexibility, value and prefer getting information through multiple channels. For these clients, information regarding insurance has become a necessity. 

For most, it was imprecise how Ethiopian insurers would manage their prices devoid of actuaries. As most insurers know, premium has a more significant impact on the bottom-line than any other item on a company’s income statement. For the average insurance company, a 1Pct drop in price can slash operating profits by up to 15 - 20Pct if not more. While there is no single recipe to determine insurance pricing, professionals commonly follow a general sequence of steps for developing the pricing of insurance premium. The insurance premium collected should at least be sufficient to fund expected claim costs and administrative costs and provide an expected profit to compensate for the cost of capital. Scholars argue that, cascaded from corporate strategy, the firm's pricing objectives must be identified in order to determine optimal pricing.