Ethiopia insurance insurance in ethiopia bellwood prestbury. Road travel can be hazardous due to poor maintenance, safety standards and the risk of banditry outside the capital city. The insurance industry in nigeria is still growing and developing. In the 1960s there were a handful of tanneries and mechanized footwear factories, all under the proprietorship of foreign investors. What is the history and development of insurance in nigeria. The hammurabi code was one of the first forms of written laws. Ethiopian insurance sector and its contribution to. Governance, risk and compliance the ethiopian insurance industrysummarythe ethiopian insurance industry is supervised and regulated by the national bank of ethiopia nbe. Ethiopia industry, information about industry in ethiopia. Research report 22 the ethiopian insurance industry and. Governance, risk and compliance the ethiopian insurance industry. Foreign insurance companies operating insurance business in ethiopia prior to the enactment of the 1970 insurance proclamation 267 iii.
April 20 divides marketing history in relation to time as follows. Make good the loss suffered by the insured against a. The economy of ethiopia is a mixed and transition economy with a large public sector. Insurance pdf types of insurance, scope of insurance,classification hello friends welcome to. Insurance pdf types of insurance, scope of insurance. Tsehay insurance has reported that it has earned 33. Insurance policies marketed in the ethiopian insurance industry 269 iv.
The ethiopian insurance industry is relatively under developed in comparison to that of other african countries. 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. Find out what the first written policy entailed and how the history of insurance evolved from there. 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. 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.
Socalled bottomry contracts were known to merchants of babylon as early as 40003000 bce. Four chapters of the commercial code of ethiopia are devoted to providing a legal framework in the insurance industry ibid. 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. It should be noted that agents work exclusively for the insurance company. History of northern ethiopia and the establishment of the italian colony or eritrea. Its bordering neighbors include eritrea to the north, somalia and djibouti to the east, kenya to the south, and sudan to the west. 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. He speaks about the opportunities and challenges of insurance business in. 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. Ethiore conducted its 4th annual general meeting agm of shareholders on thursday 12th december,2019 at skylights hotel, addis ababa, ethiopia. Click on document the insurance industry in ethiopia 2017. Insurance in ethiopia historical development, present status. Financial performance of the insurance sector during the penods of.
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. Hammurabis code appears to be the first written insurance policy. 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. History of insurance in ethiopia modern insurance service in ethiopia started in 1905.
Introduction and history of insurance authorstream presentation. Jan 06, 2020 the first written insurance policy was found on an ancient babylonian monument. Insurance insurance historical development of insurance. 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 commercial bank of ethiopia cbe, the largest bank in the industry, accounts 38. The primary business of the insurer is risk assumption for a fee.
Teshome berhe is one of the founders of ethio life and general insurance. In ethiopia, the modern insurance business has no deeprooted history like in most countries of the world. Insurance is a very important topic mba, bcom,mcom and other finance related degrees. It makes our conclusions valid when we logically move from ethiopias insurance history to. As it can be observed from the above historical development, after the market liberalization in ethiopia, the number of insurance companies have been growing. Infoplease has everything you need to know about ethiopia. Under a bottomry contract, loans were granted to merchants. Understanding the historical background of the insurance. The history of currency and banking in ethiopia and the horn of africa from the middle ages to 1935, ethiopia observer, n. This school of thought defines insurance in terms of. 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.
Development, present status and future challenges explores the historical trajectories, thoroughly. Doc history of insurance in ethiopia waqo guta academia. As a result of the insurance decrees and developments since 1961, the insurance industry in nigeria has been growing steadily. 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 government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy.
There are 10 insurance companies in ethiopia up from 9 in 2007, with about 200 branches across the country. 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. Understanding the historical background of the insurance sector in. This is very low compared to other markets such as south africa with penetration levels of around 12%. Its the latest chapter in the 5,000year history of our industry. It is intended to provide temporary insurance protection to the consumer pending a formal policy being issued by the insurance company. Most them, especially the private insurance companies. 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. 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. Insurance in ethiopia historical development, present. Insurance in some form is as old as historical society. 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. The insurance industry helps to eliminate risks as when fire insurance providers demand the implementation of safe practices and the installation of.
Make good the loss suffered by the insured against a specific risk for which the insurance is. Under the derg regime, almost all of the major industries were owned exclusively by the state. The less rewarding trend of insurance regulations in ethiopia. If youre looking for a free download links of insurance practice and marketing. Generally, public banks dominate the financial industry in ethiopia. 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. Mar 24, 2014 teshome berhe is one of the founders of ethio life and general insurance. International health insurance in ethiopia is essential, along with cover for emergency evacuation. 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 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. If thats not enough, click over to our collection of world maps and flags. Business insurance in ethiopia global strategy and. Insurance business in ethiopia the practitioners view. Nigerian insurance industry and is governed by the insurance commission act 1997 and insurance act 2003. Kevin wysner insurance coordinator office of quality and risk 4047787937. The history of the national highway system read more about the greatest public works project in history. The industrys aggregate contribution to national gdp penetration is around 0. African countries which modernised in the 1950s and 60s. The first written insurance policy appeared in ancient times on a babylonian obelisk monument with the code of king hammurabi carved into it. Terrorist attacks have been threatened throughout ethiopia. This report is a comprehensive research of insurance industry in ethiopia. 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. Ethiopian insurance corporation eic was established by proclamation no.
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. Jul 30, 20 the ethiopian insurance industry is relatively under developed in comparison to that of other african countries. Ethiopian insurance law archives ethiopian legal brief. Development bank of ethiopia dbe is a specialized bank in project financing and is not a deposit taking institution nbe, 2014. 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. Background a pre1974 ethiopia commenced exporting raw hides and skins along with the openingup of the economy in the 1920s. Hence, the value added by the insurance industry, i. A history of early twentieth century ethiopia, richard pankhurst, 1997. An overview the impulse for an industrial policy in ethiopia comes from the need to attain a high growth rate of exports.
Profile of insurance companies in ethiopia june 30, 2005 268 iv. 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. 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. Ethiopia health insurance pacific prime international. There has hardly ever been any work in insurance business in ethiopia that delved into the historical and factual aspects of the industry. The derg borrowed its ideology from competing marxist parties, all of which arose from the student movement. The first re insurance company in ethiopia best re. Bottomry was also practiced by the hindus in 600 bce and was well understood in ancient greece as early as the 4th century bce.
The ethiopian insurance industry and the reinsurance business legal environment. 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. 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. May 2020 insurance companies in ethiopia latest ethiopian. Ethiopia, officially the federal democratic republic of ethiopia, is a large landlocked country positioned in the horn of africa. Origins and early development of banking in ethiopia. 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. There are, currently, less than 10 government owned and private insurance companies in ethiopia. 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. The industry s aggregate contribution to national gdp penetration is around 0.
Pdf an overview of the insurance industry and its regulation. Insurance historical development of insurance britannica. In the dark and middle ages, the guild system emergedmembers paying into a larger pool that covered total loss. Captive agents represent a single insurance company. 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. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. The history of street signs now that youve gotten the rundown on car insurance, learn more about the beginnings of street signs. The case of the association of ethiopian microfinance.
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