Insurance Brokers Sound the Alarm on Industry Flaws

Aug 5 , 2023


[ssba-buttons]

Serious challenges in settling Political Violence & Terrorism Insurance (PVT) claims were presented by the Ethiopian Brokers Association (EBA) last week highlighting the vast discrepancies between what customers consider to be covered and the actual services of insurance companies. Following an order by the National Bank of Ethiopia (NBE), a restriction on the use of PVT as a marketing tool has created a gap between insurance companies and the general public. Teferea Wondimu, general manager of Fana Insurance Brokers presented the paper that pointed to the conflicting scopes of cover, placement of cover and perplexing exclusion stipulations in the insurance policies. With 56 insurance brokers, 18 insurance companies and one re-insurer in the country, the lack of reach and density in the sector was also cited by the brokers who bemoaned that their contribution to the industry is under-evaluated. The meeting between veterans of the industry was held at the Anbessa Insurance Building on Haile Gebreselassie St. Another paper presented by Hadush Tsehay indicated that five companies control nearly three-quarters of the market, pointing to a lack of diversity. He emphasised that motor insurance accounts for nearly half of the earnings while acknowledging that the little over 40pc in return on capital was a strong suit of the Ethiopian insurance sector.


Radar

US Renews National Emergency, Sanctions on Ethiopia

The United States has extended the national emergency and sanctions on Ethiopia for another year under the African Growth & Opportunity Act (AGOA). Signed by President Donald J. Trump, the measure was first declared on September 17, 2021, through an executive order citing the conflict in northern region of the country as an "unusual and extraordinary" threat to U.S. national security and foreign policy. The extension, effective until September 17, 2026, keeps in place restrictions targeti...


Radar

Rockefeller Pitches Clean Cooking to Curb School Meal Emissions

A recent study has revealed the staggering environmental toll of school feeding programs. A single school serving 400 students can burn through the equivalent of 56 hectares of forest each year to fuel cooking. The Rockefeller Foundation flagged the health risks too, with most cooks, predominantly women, breathing smoke levels ten times higher than the World Health Organisation's safe limit. "If every school meal transitioned to clean cooking with electricity and solar, the emissions saved wo...


Radar

Sun-Powered Grid Brings Light to Qunbi District

A new 600KW solar mini-grid in East Hararge'sQunbi district has connected 2,200 households to electricity, marking a milestone in the recent rural electrification push. Ethiopian Electric Utility (EEU) laid seven kilometres of medium-voltage and 10 kilometres of low-voltage lines, installing four transformers to reach communities long cut off from power. Customers cover only meter and installation costs before accessing the service. The project is part of the national strategy to expand energ...