The ethiopian insurance industry is relatively under developed in comparison to that of other african countries. Captive agents represent a single insurance company. In ethiopia, the modern insurance business has no deeprooted history like in most countries of the world. There are, currently, less than 10 government owned and private insurance companies in ethiopia. List of insurance companies in ethiopia insurancehorn.
The less rewarding trend of insurance regulations in ethiopia. The period of agents of foreign insurance companies, 1920s 1950s 42 3. Companies limited by shares 261 page 49 50 53 55 58 chapter 1. Foreign insurance companies operating insurance business in ethiopia through agents in 1954 265 ii. If youre looking for a free download links of insurance practice and marketing. It commenced operation on 1 st july 2016, transacting both life and nonlife businesses. Type of insurance companies operating in ethiopia the practice of insurance service in its modern sense is a recent phenomenon which is said only to have been started in the early 1920s. Nib insurance company is one of gaint insurance companies which is found in ethiopia, if you think to get best insurance service in ethiopia, nib insurance is the best place to come and get those insurance services, our company had long experiance in ethiopian insurance sector and get more. Ethiopia international health insurance globalsurance is a onestop insurance brokerage service provider for you when travelling to the ethiopia. 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.
Insurance insurance historical development of insurance. The emergence of modern insurance in ethiopia 41 3. It should be noted that agents work exclusively for the insurance company. Reliable information about the coronavirus covid19 is available from the world health organization current situation, international travel. According to the imf, ethiopia was one of the fastest growing economies in the world, registering over 10% economic growth from 2004 through 2009. C is one of the pioneer private insurers established on april, 1995 with a capital of birr 12. Ethiopian insurance corporation eic was established in 1976 by proclamation no. This school of thought defines insurance in terms of.
Ethiopia is a nation with a long, venerable and complex history. 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. Its bordering neighbors include eritrea to the north, somalia and djibouti to the east, kenya to the south, and sudan to the west. Establishment of the first domestic insurance company 44 3. Background reinsurance company in ethiopia best insurance. Ethiopia is a country located in the horn of africa. 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 in 1905. As a result of the insurance decrees and developments since 1961, the insurance industry in nigeria has been growing steadily. Ethiopian res head office is located in addis ababa, ethiopia. Types of insurance in ethiopia insurance is a way of protecting oneself from financial loss. Profile of insurance companies in ethiopia june 30, 2005 268 iv. It was the fastestgrowing nonoildependent african economy in the years 2007 and 2008.
It is intended to provide temporary insurance protection to the consumer pending a formal policy being issued by the insurance company. C ethiopian re is the first reinsurance company incorporated under the provisions of article 58 of the insurance business proclamation no. Types of insurance in ethiopia insurance top lists. In 1667, a mutual society was formed by nicholas barbon, originally called the fire office, then later renamed the phoenix fire office, after the mythical. In 2015, the world bank highlighted that ethiopia had witnessed rapid economic growth with real domestic. It is a place of dramatic natural beauty, of mountains and valleys, lakes and rivers, and the magnificent blue nile falls. 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. Scientists believe that ethiopia is the cradle of mankind. It only requires updating with the help of new data that are constantly retrieved from publishers databases and other sources. Bottomry was also practiced by the hindus in 600 bce and was well understood in ancient greece as early as the 4th century bce. Nice is the first wholly privately owned insurance company, established in post 1994 ethiopia, to engage in general insurance business. Socalled bottomry contracts were known to merchants of babylon as early as 40003000 bce. Between 2002 and 2007, general insurance companies generated an average return on equity of 16.
Insurance in some form is as old as historical society. Ethiopian history, the cradle of mankind, kibran tours. History of insurance in ethiopia modern insurance service in ethiopia started in 1905. 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. The franklin health assurance company of massachusetts no relation to ben as far as we know was the first u.
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. 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. Ethiopia, officially the federal democratic republic of ethiopia, is a large landlocked country positioned in the horn of africa. 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. The derg borrowed its ideology from competing marxist parties, all of which arose from the student movement. Its head office is in addis ababa, ethiopia, and operates through 40 branch offices and 4 licensed contact offices located in addis ababa and different parts of. 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 corporation came into existence by taking over all the assets and liabilities of the thirteen nationalized private insurance companies, with birr 11 million usd 1. Top insurance companies in ethiopia insurance digest. It is a kind of risk management in which one pays a premium fee to the insurer which can be the state, a bank, or any other designated financial institution in order to receive a stipulated payment in the event of losing whatever has been insured, due to an accident, or any other event in which. 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. Ethiopian insurance corporation eic was established by proclamation no. Basic categories of insurances under ethiopian law.
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. There are several insurance companies in ethiopia dealing with all kinds and types of insurance like home insurance,health insurance, car insurance, property insurance, construction insurance, life. 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 fire insurance providers demand the implementation of safe practices and the installation of hydrants, spreads risks from individuals to the larger. Although the ancient, aboriginal population of what is now ethiopia were cushitic language speakers, the culture that came to be identified with ethiopia came from arabia, probably as early as. The transaction between two insurance companies in which one insurance company issue an insurance contract for an other company is called reinsurance or reassurance in life insurance.
Most them, especially the private insurance companies. Although located in the tropics its high altitudes give much of it a temperate climate. The main concept of insurancethat of spreading risk among manyhas been around as long as human existence. Tsehay insurance has reported that it has earned 33. The share of private insurance companies in total branches stood at 81. Ethiopia certainly has an impressive selection of tropical diseases on offer, but as long as you stay up to date with your vaccinations and take some basic preventive measures, youre much more likely to get a bout of diarrhoea, a cold or an. What is the history and development of insurance in nigeria. This is a comprehensive list of insurance companies in ethiopia. Ethiopian insurance corporation addis ababa, ethiopia. Oclcs webjunction has pulled together information and resources to assist library staff as they consider how to handle coronavirus. Business insurance in ethiopia global strategy and. Ethiopia health insurance pacific prime international. 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. Jointly owned by the emperor, his entourage and foreign companies, the first domestic insurance company, namely, imperial insurance company started issuing policies in fire, life and general accident since 1951.
Insurance historical development of insurance britannica. Ethiopia is one of the most fascinating lands in the world with a rich and varied history that began long before ancient greece and the roman empire existed. The first re insurance company in ethiopia best re. The commercial code and the maritme code of ethiopia, insurance 46. 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 individuals to the larger. Kevin wysner insurance coordinator office of quality and risk 4047787937. Ethiopian insurance law archives ethiopian legal brief.
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