The National Insurance Company of Ethiopia (NICE) has its executives determined to acquire CORE insurance solutions, a quarter of a century after it was incorporated in the mid-1990s.

The insurance industry has been scrambling to acquire CORE insurance solutions following a directive by the National Bank of Ethiopia (NBE) issued six months ago. It compels insurers to automate their services within two years. They will face suspension after two years of extension and a 10,000 monthly penalty if they fail to comply.

The regulators are pressuring insurance companies to be competitive, anticipating foreign insurance companies entering the Ethiopian market in the next two years, according to Assegid Gebremedhen works as an insurance consultant after a two-decade debut in the industry serving as Deputy CEO of NICE and Global Insurance.

“Insurance companies have to be competitive,” said Assegid.

CORE solutions increase the efficiency of companies. However, Assegid doubts the solution can be reliable for international software vendors who would not provide follow-ups and technical support.

Over 10 technology firms have responded until last week to its public announcement to build an automated insurance management system.

3i Infotech, a global Information Technology company headquartered in Mumbai, India, is among the companies that showed interest. It provides technology solutions, including IT services, application software development and maintenance payment solutions to over 1,500 customers in over 50 countries. Africa Insurance Company (AIC) is one of its customers in Ethiopia, recently upgrading to PREMIA Version 11 software solution.

Astar Technologies, an IT company in Vadodara, India, is vying to provide the solution. The company has been in business for over two decades supplying products to companies in India and Australia.

“We primarily focus on technological compatibility,” said Gizeaddis Balemual, manager for strategy development.

A committee comprising directors, the Chief Executive Officer (CEO) and senior management staff is formed to oversee the procurement process. With the bid evaluation process taking three weeks, the company expects to complete deploying the core solution within a year.