If thats not enough, click over to our collection of world maps and flags. The industry s aggregate contribution to national gdp penetration is around 0. Profile of insurance companies in ethiopia june 30, 2005 268 iv. Ethiopian insurance law archives ethiopian legal brief. There are, currently, less than 10 government owned and private insurance companies in ethiopia. Understanding the historical background of the insurance sector in. Research report 22 the ethiopian insurance industry and. There were only three companies conducting life insurance business in 1972 in ethiopiaanalysis of the insurance business during the years 19671972 indicates that the share of life insurance in the total gross premium income of the industry declined from 15. Historical development, present status and future challenges explores the historical trajectories, thoroughly examines its emergence and the tortuous path it has gone through ever since the. The first two chapters of the report feature the country profile by giving general information on ethiopia and by thoroughly studying its economic state, including key macroeconomic indicators and their development trends. One of them, the ethiopian peoples revolutionary party eprp, believed so strongly in civilian rule that it undertook urban guerrilla war against the military rulers, and anarchy ensued in the following years. There are 10 insurance companies in ethiopia up from 9 in 2007, with about 200 branches across the country.
Financial performance of the insurance sector during the penods of. It should be noted that agents work exclusively for the insurance company. The case of the association of ethiopian microfinance. Under a bottomry contract, loans were granted to merchants. Bottomry was also practiced by the hindus in 600 bce and was well understood in ancient greece as early as the 4th century bce. Its bordering neighbors include eritrea to the north, somalia and djibouti to the east, kenya to the south, and sudan to the west. Ethiore conducted its 4th annual general meeting agm of shareholders on thursday 12th december,2019 at skylights hotel, addis ababa, ethiopia.
A history of early twentieth century ethiopia, richard pankhurst, 1997. Situated in the horn of africa, ethiopia is bordered by eritrea to the north, sudan to the west, kenya to the south, somalia to the east and djibouti to the northeast. What is insurance the legal sense insurance is a contract under which the insurer insurance company in consideration of a sum of money paid premium by the insured the person whose risk is insured agrees to. Before the commencement of modern insurance service in the country, there have been traditional practices by which people help each other whenever they face either financial difficulties or needs assistance. The insurance industry helps to eliminate risks as when fire insurance providers demand the implementation of safe practices and the installation of. The economy of ethiopia is a mixed and transition economy with a large public sector. Origins and early development of banking in ethiopia.
The industrys aggregate contribution to national gdp penetration is around 0. Insurance policies marketed in the ethiopian insurance industry 269 iv. The first written insurance policy appeared in ancient times on a babylonian obelisk monument with the code of king hammurabi carved into it. Foreign insurance companies operating insurance business in ethiopia prior to the enactment of the 1970 insurance proclamation 267 iii. Under the derg regime, almost all of the major industries were owned exclusively by the state. The insurance industry in nigeria is still growing and developing. The history of insurance traces the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile accidents, and medical treatment the insurance industry helps to eliminate risks as when fireinsurance providers demand the implementation of safe practices and the installation of hydrants, spreads risks from. Doc history of insurance in ethiopia waqo guta academia.
In turn, high growth rate of exports is required, in the first instance, to remove the threat of balance of payment constraint on gdp growth. Insurance pdf types of insurance, scope of insurance,classification hello friends welcome to. Please contact kevin wysner in the office of quality and risk before beginning a program in ethiopia to determine any local or international insurance requirements needed for your particular program activities or assets. This is very low compared to other markets such as south africa with penetration levels of around 12%. International health insurance in ethiopia is essential, along with cover for emergency evacuation. Tsehay insurance has reported that it has earned 33. This school of thought defines insurance in terms of. Jan 06, 2020 the first written insurance policy was found on an ancient babylonian monument. Historical development, present status and future challenges explores the historical trajectories, thoroughly examines its emergence and the tortuous path it has gone through ever since the inception of insurance industry in early twentieth century in ethiopia. Jul 30, 20 the ethiopian insurance industry is relatively under developed in comparison to that of other african countries. Click on document the insurance industry in ethiopia 2017.
Nigerian insurance industry and is governed by the insurance commission act 1997 and insurance act 2003. At the time, an agreement was reached between emperor menelik ii and a representative of the british owned national bank of egypt to open a new bank in ethiopia. May 2020 insurance companies in ethiopia latest ethiopian. Insurance in ethiopia historical development, present status. Generally, public banks dominate the financial industry in ethiopia. According to many historians and scholars, the emergence of the modern insurance industry traces back to the pioneer, the former bank of abyssinia, established by emperor menelik ii. Insurance in ethiopia historical development, present. In ethiopia, the modern insurance business has no deeprooted history like in most countries of the world.
Captive agents represent a single insurance company. Ethiopian insurance sector and its contribution to. Make good the loss suffered by the insured against a specific risk for which the insurance is. Most them, especially the private insurance companies. There has hardly ever been any work in insurance business in ethiopia that delved into the historical and factual aspects of the industry. The primary business of the insurer is risk assumption for a fee. As it can be observed from the above historical development, after the market liberalization in ethiopia, the number of insurance companies have been growing. Four chapters of the commercial code of ethiopia are devoted to providing a legal framework in the insurance industry ibid.
Ethiopia, officially the federal democratic republic of ethiopia, is a large landlocked country positioned in the horn of africa. In the 1960s there were a handful of tanneries and mechanized footwear factories, all under the proprietorship of foreign investors. Ethiopia health insurance pacific prime international. Business insurance in ethiopia global strategy and. During the event, it was reported that the financial year 201819 has been a great year, in which the company successfully achieved the targets planned. The history of street signs now that youve gotten the rundown on car insurance, learn more about the beginnings of street signs.
It is intended to provide temporary insurance protection to the consumer pending a formal policy being issued by the insurance company. In the dark and middle ages, the guild system emergedmembers paying into a larger pool that covered total loss. Development bank of ethiopia dbe is a specialized bank in project financing and is not a deposit taking institution nbe, 2014. It makes our conclusions valid when we logically move from ethiopias insurance history to. Infoplease has everything you need to know about ethiopia. The derg borrowed its ideology from competing marxist parties, all of which arose from the student movement. Kevin wysner insurance coordinator office of quality and risk 4047787937. Road travel can be hazardous due to poor maintenance, safety standards and the risk of banditry outside the capital city.
Insurance is a very important topic mba, bcom,mcom and other finance related degrees. Hammurabis code appears to be the first written insurance policy. If youre looking for a free download links of insurance practice and marketing. Pdf an overview of the insurance industry and its regulation. Find out what the first written policy entailed and how the history of insurance evolved from there. What is the history and development of insurance in nigeria. Feb 02, 2010 ethiopian industry, including both mining and manufacturing, constitutes approximately 12 percent of the gdp, while providing employment for 8 percent of the countrys labor force 1998 est. Terrorist attacks have been threatened throughout ethiopia. History of insurance in ethiopia modern insurance service in ethiopia started in 1905. The ethiopian insurance industry is relatively under developed in comparison to that of other african countries. Governance, risk and compliance the ethiopian insurance industry. Nov 02, 2015 there were only three companies conducting life insurance business in 1972 in ethiopiaanalysis of the insurance business during the years 19671972 indicates that the share of life insurance in the total gross premium income of the industry declined from 15. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Development, present status and future challenges explores the historical trajectories, thoroughly.
The evolution of insurance origins of risk at the dawn of modern human history, widely dispersed groups of tightly knit kin, whom we today refer to collectively as hunter gatherers, relied almost exclusively on clan relatedness as their only bulwark against the ever present risk of death, debilitating injury, and starvation. The insurance industry helps to eliminate risks, spreads risks from individuals to the larger community, and provides an important source of longterm finance for both the public and private sectors. Insurance business in ethiopia the practitioners view. The less rewarding trend of insurance regulations in ethiopia. Insurance insurance historical development of insurance. History of northern ethiopia and the establishment of the italian colony or eritrea. Hence, the value added by the insurance industry, i. Zeleke 2007 in his study insurance in ethiopia, the rationale for regulation and supervision of the insurance industry is basically to ensure the growth and stability of the sector and to protect the interests of policyholders zeleke, 2007.
The hammurabi code was one of the first forms of written laws. The history of insurance traces the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile accidents, and medical treatment. Insurance historical development of insurance britannica. The ethiopian insurance industry and the reinsurance business legal environment.
The new comers privately owned insurance companies have penetrated the financial market and reduced the market share of ethiopian insurance corporation from 100 percent to 57 percent. Make good the loss suffered by the insured against a. Ethiopia insurance insurance in ethiopia bellwood prestbury. The insurance special supervisory fund decree of 1989 strengthened the insurance supervisory board and included a provision mandating that all insurance companies contribute 1 percent of their gross earnings to the fund. Insurance pdf types of insurance, scope of insurance. An overview the impulse for an industrial policy in ethiopia comes from the need to attain a high growth rate of exports.
Background a pre1974 ethiopia commenced exporting raw hides and skins along with the openingup of the economy in the 1920s. He speaks about the opportunities and challenges of insurance business in. Socalled bottomry contracts were known to merchants of babylon as early as 40003000 bce. The requirements to carry on insurance business in ethiopia by abrham yohannes on september, 2011 4 comments taken from law of banking, negotiable instruments and insurance prepare by fasil alemayehu and merhatbeb teklemedhn sponsoredby justice justice and legal system research institute the requirements to carry on insurance. Evolution of insurance companies in ethiopia the history of insurance service is as far back as modern form of banking service in ethiopia which was introduced in 1905. The history of the national highway system read more about the greatest public works project in history. African countries which modernised in the 1950s and 60s. Ethiopia industry, information about industry in ethiopia. The history of currency and banking in ethiopia and the horn of africa from the middle ages to 1935, ethiopia observer, n. Teshome berhe is one of the founders of ethio life and general insurance. Insurance in some form is as old as historical society. As a result of the insurance decrees and developments since 1961, the insurance industry in nigeria has been growing steadily. It also underscored a watershed in the history of insurance business that culminated in the issuance of the commercial code of ethiopia in 1960. The commercial bank of ethiopia cbe, the largest bank in the industry, accounts 38.
Its the latest chapter in the 5,000year history of our industry. Understanding the historical background of the insurance. Historical development, present status and future challenges explores the historical trajectories, thoroughly examines its emergence and the tortuous path it has gone through ever since the inception of insurance. Governance, risk and compliance the ethiopian insurance industrysummarythe ethiopian insurance industry is supervised and regulated by the national bank of ethiopia nbe. Mar 24, 2014 teshome berhe is one of the founders of ethio life and general insurance. The first re insurance company in ethiopia best re. Introduction to insurance principles of insurance 18 the insured is the person or firm or company confronted by risk and the insurer is a person or firm or company, which specializes in the assumption of risk. Ethiopian industry, including both mining and manufacturing, constitutes approximately 12 percent of the gdp, while providing employment for 8 percent of the countrys labor force 1998 est. April 20 divides marketing history in relation to time as follows.
Ethiopian insurance corporation eic was established by proclamation no. Check out our country profile, full of essential information about ethiopias geography, history, government, economy, population, culture, religion and languages. Introduction and history of insurance authorstream presentation. This report is a comprehensive research of insurance industry in ethiopia.
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