The Ethiopian Insurance Corporation (EIC) is reporting a boost in its risk management capacity, exceeding Birr 6.2 trillion in the first nine months of the current Ethiopian fiscal year. This marks a 50% increase from the same period last year.

This achievement comes as a result of extensive reform initiatives undertaken by EIC. These reforms focused on expanding the corporation's service offerings, modernizing its operations, and making insurance more accessible to the public.

The positive impact is evident across the board. EIC collected Birr 7.6 billion in premium income, a 33% increase compared to last year. Additionally, the corporation paid out Birr 2.2 billion in compensation while achieving a record pre-tax profit of over Birr 1.2 billion.

However, CEO Netsanet Lemesa acknowledges ongoing challenges in making comprehensive insurance accessible to everyone. Limited public awareness, slow technological adoption, and a lack of focus on low-income populations are all hurdles that need to be addressed.

Other complexities include enforcing mandatory declarations and a scarcity of spare parts in the vehicle insurance market. To effectively manage current risks and claim costs, Netsanet emphasizes the need for appropriate adjustments to insurance premiums.

Looking ahead, the establishment of an independent commission to regulate the insurance sector is expected to bring much-needed support and address industry-wide challenges.

Source: Ethiopian News Agency