Central Bank Introduces Maiden Directive to Govern Reinsurance

Mar 19 , 2022

Regulators at the National Bank of Ethiopia (NBE) have introduced their first-ever directive to govern licensed reinsurance firms. Reinsurance firms were previously governed using directives drafted for the insurance industry. The new directive, which came into force on March 1, 2022, introduces new rules for reinsurance companies. They are required to submit audited financial statements and other supporting documents within 90 days of the end of the financial year, while they are obliged to provide thorough semi-annual reports as well. The directive stipulates that the firms' invested funds be no less than 60pc of total assets in treasury bills (T-bills) and bank deposits. Ethiopian Reinsurance (Ethio-Re), incorporated in 2016, is the sole reinsurance provider. All of the 17 insurance firms transfer five percent of all insurance policies to Ethio-Re, 25pc of treaty sessions, and policy coverages assigned to other reinsurers.