Facts and figures show that the insurance density-cum-penetration level in Ethiopia is at the lowest point. While there are scores of factors, both from the supply and demand sides, one possible reason is dearth of research based insurance products and solutions that could meet the needs and socio cultural make up and religious standards of the society. The industry is highly dependent on conventional insurance products such as “motor” which constitutes the largest portfolio.



The concept of ‘micromanagement’ might not be new to you. Still, it’s a buzzy term in the business world and often it means different things to different people; therefore, it is important to define the term from the outset. Its actual meaning, as defined by academicians, is supervision with too much control on trifling details. In most cases, no matter how minute the project or decision, micromanagers sense it compulsory to be in command of it.



Business organisations and individuals in Ethiopia vary in terms of their stance on the subject of electing insurance as a risk management tool. Practice and figures show that although insurance policies are availed to guard businesses from apparent life, property and liability risks, most prefer self-insurance or other risk management tools instead of traditional insurance.



as a Strategy of Reducing Drought-Related Vulnerability

Ideally, the rainy season in Ethiopia begins in June and lingers through August or mid-September. Known locally as keremt, it is during these three months that Ethiopia obtains the chief portion of its total annual rainfall – and serves as a key determinant in the country’s ability to feed its populace and prepare certain items for export.



Mind the ‘Attention Gap’

‘Insurance fraud’ has existed since the commencement of the insurance business in its modern sense. In general, insurance fraud transpires when a beneficiary acquires a benefit to which he or she is not otherwise eligible. The insurance directive issued by the National Bank of Ethiopia (NBE) in 2014 specifically defines fraud as “an act or omission by shareholders, directors, employees, customers, policyholders or insurance auxiliaries committed with the intention of gaining dishonest or unlawful advantage for the party committing fraud or for other parties.”



Look into the Future, Listen to the Young

Every generation feels that they are unique in some aspect from their parent’s generation. The phrase; “In our day we did things differently,” has been repeated throughout history. In the work place, the challenge is to understand generational differences so that they do not become a breeding ground for confusion, resentment, anger or turnover.



The Ethiopian Health Insurance Agency, a new establishment designed to change the nation’s health insurance platform, is almost ready to launch the first ever health insurance scheme in the country. Its goal is to escalate the health service coverage in order to speed up sustainable health care financing that augments equitable admittance to enhanced health services by means of cross-subsidization.



In the name of liberalization, and because of relatively easy entry barriers, financial institutions have sprouted up all over the country. With just not more than two decades almost seventeen insurers, seventeen banks and thirty one micro financial institutions, of varying capabilities have joined the sector. Among these, state financial institutions most of which emerged from the old planned economy maintain a massive physical presence and top-heavy market share.




Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.



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