Cut throat Price Competitions, Low Capital Base, & Poor Policy Threaten their Growth
Insurance is one of the key pillars of a modern economy. It contributes to mobilize savings, transfer risks and reduce financial losses.
The history of modern insurance in Ethiopia, especially the private sector driven one, is at its early stage. However, the sector is crippled with lack of innovative products and services. As a result, the industry lags far behind several African countries. The sector’s growth, especially in recent years, is marred with rising claims and declining premium rates. The stiff price based competition in the market contributed to this situation. EBR’s Ashenafi Endale explores the issue to offer this report.