ADDIS ABABA - Ethiopian Reinsurance S.C. said that the demand for life insurance service in the country has shown a steady uptick due to rapid urbanization and improvements in the livelihoods of the society.
The disclosure came at the First National Life Assurance Summit organized by Ethiopian Reinsurance S.C. on Thursday under the theme 'Breathing Life in to the Life Assurance Business.'
Opening the summit, Company Board Chief Hailemariam Assefa said that the number of people who need life insurance services in Ethiopia, particularly in urban areas has been increasing over time creating strong potential for the sector's growth.
The board chief, however, admitted that the introduction of life insurance service in the country and its contribution to the national economy have not reached at the desired level. Though the share of general insurance into Ethiopia's Gross National Product is significantly enhanced, the share of life insurance is still minimal.
As to him, the limited attention that has been given to the insurance industry in general and life insurance in particular is the primary factor for the former's underperformance and impeded the country from tapping the sector's untapped potential.
Public Financial Enterprises Director with the Ethiopian Public Enterprise Holding and Administration Agency, Sewagegne Chanie told The Ethiopian Herald that the agency has been working to nurture the public's use of life insurance service. To this end, close partnership has been formed with different international organizations and research institutions.
The agency has planned to prepare a policy which helps to address challenges the life insurance sector has been encountered thereby boosting its contribution in the national economy, he stated.