Foreign insurance companies operating insurance business in ethiopia through agents in 1954 265 ii. Ethiopian res head office is located in addis ababa, ethiopia. Historical development, present status and future challenges explores the historical trajectories, thoroughly examines its emergence and the tortuous path it has gone through ever since the inception of insurance. They are insurance against damages, insurance of liability for damages and insurance of persons. There has hardly ever been any work in insurance business in ethiopia that delved into the historical and factual aspects of the industry. Ethiore conducted its 4th annual general meeting agm of shareholders on thursday 12th december,2019 at skylights hotel, addis ababa, ethiopia. Insurance insurance historical development of insurance. Ethiopia is one of the most fascinating lands in the world with a rich and varied history that began long before ancient greece and the roman empire existed. The transaction between two insurance companies in which one insurance company issue an insurance contract for an other company is called reinsurance or reassurance in life insurance. Scientists believe that ethiopia is the cradle of mankind. One of them, the ethiopian peoples revolutionary party eprp, believed so strongly in civilian rule that it undertook urban guerrilla war against the military rulers, and anarchy ensued in the following years.
Reliable information about the coronavirus covid19 is available from the world health organization current situation, international travel. Ethiopia international health insurance globalsurance is a onestop insurance brokerage service provider for you when travelling to the ethiopia. Bottomry was also practiced by the hindus in 600 bce and was well understood in ancient greece as early as the 4th century bce. Ethiopian insurance corporation addis ababa, ethiopia. Ethiopian insurance corporation eic was established in 1976 by proclamation no. The less rewarding trend of insurance regulations in ethiopia. In ethiopia, the modern insurance business has no deeprooted history like in most countries of the world. There are several insurance companies in ethiopia dealing with all kinds and types of insurance like home insurance,health insurance, car insurance, property insurance, construction insurance, life. According to the imf, ethiopia was one of the fastest growing economies in the world, registering over 10% economic growth from 2004 through 2009. It is a place of dramatic natural beauty, of mountains and valleys, lakes and rivers, and the magnificent blue nile falls.
In 1667, a mutual society was formed by nicholas barbon, originally called the fire office, then later renamed the phoenix fire office, after the mythical. It commenced operation on 1 st july 2016, transacting both life and nonlife businesses. Profile of insurance companies in ethiopia june 30, 2005 268 iv. The history of insurance traces the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile accidents, and medical treatment the insurance industry helps to eliminate risks as when fireinsurance providers demand the implementation of safe practices and the installation of hydrants, spreads risks from individuals to the larger.
The insurance special supervisory fund decree of 1989 strengthened the insurance supervisory board and included a provision mandating that all insurance companies contribute 1 percent of their gross earnings to the fund. It is a kind of risk management in which one pays a premium fee to the insurer which can be the state, a bank, or any other designated financial institution in order to receive a stipulated payment in the event of losing whatever has been insured, due to an accident, or any other event in which. Insurance in ethiopia historical development, present. Its head office is in addis ababa, ethiopia, and operates through 40 branch offices and 4 licensed contact offices located in addis ababa and different parts of. The evolution of insurance origins of risk at the dawn of modern human history, widely dispersed groups of tightly knit kin, whom we today refer to collectively as hunter gatherers, relied almost exclusively on clan relatedness as their only bulwark against the ever present risk of death, debilitating injury, and starvation. Before the commencement of modern insurance service in the country, there have been traditional practices by which people help each other whenever they face either financial difficulties or needs assistance. Insurance in some form is as old as historical society. C ethiopian re is the first reinsurance company incorporated under the provisions of article 58 of the insurance business proclamation no. The franklin health assurance company of massachusetts no relation to ben as far as we know was the first u.
Although the ancient, aboriginal population of what is now ethiopia were cushitic language speakers, the culture that came to be identified with ethiopia came from arabia, probably as early as. Nice is the first wholly privately owned insurance company, established in post 1994 ethiopia, to engage in general insurance business. The company has a legal entity registered with the licensing and supervisory body of the national bank of ethiopia in accordance with proclamation no861994 and license no. Ethiopia health insurance pacific prime international. Type of insurance companies operating in ethiopia the practice of insurance service in its modern sense is a recent phenomenon which is said only to have been started in the early 1920s. Its bordering neighbors include eritrea to the north, somalia and djibouti to the east, kenya to the south, and sudan to the west. History of insurance in ethiopia modern insurance service in ethiopia started in 1905.
Jointly owned by the emperor, his entourage and foreign companies, the first domestic insurance company, namely, imperial insurance company started issuing policies in fire, life and general accident since 1951. Types of insurance in ethiopia insurance is a way of protecting oneself from financial loss. Ethiopia certainly has an impressive selection of tropical diseases on offer, but as long as you stay up to date with your vaccinations and take some basic preventive measures, youre much more likely to get a bout of diarrhoea, a cold or an. Ethiopia is a country located in the horn of africa. According to many historians and scholars, the emergence of the modern insurance industry traces back to the pioneer, the former bank of abyssinia, established by emperor menelik ii in 1905. Most them, especially the private insurance companies.
The ethiopian insurance industry is relatively under developed in comparison to that of other african countries. Background reinsurance company in ethiopia best insurance. Top insurance companies in ethiopia insurance digest. C is one of the pioneer private insurers established on april, 1995 with a capital of birr 12. What is the history and development of insurance in nigeria. The history of insurance traces the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile accidents, and medical treatment the insurance industry helps to eliminate risks as when fire insurance providers demand the implementation of safe practices and the installation of hydrants, spreads risks from individuals to the larger. The first re insurance company in ethiopia best re. Captive agents represent a single insurance company. Tsehay insurance has reported that it has earned 33. During the event, it was reported that the financial year 201819 has been a great year, in which the company successfully achieved the targets planned.
Companies limited by shares 261 page 49 50 53 55 58 chapter 1. In 2015, the world bank highlighted that ethiopia had witnessed rapid economic growth with real domestic. The share of private insurance companies in total branches stood at 81. It was the fastestgrowing nonoildependent african economy in the years 2007 and 2008. Numerous and frequentlyupdated resource results are available from this search. We offer a wide range of policies to meet your individual needs, including benefits such as dental, maternity, inpatient, outpatient, specialist consultations, and. Under the ethiopian commercial code, there are three types of insurances. Nib insurance company is one of gaint insurance companies which is found in ethiopia, if you think to get best insurance service in ethiopia, nib insurance is the best place to come and get those insurance services, our company had long experiance in ethiopian insurance sector and get more. Ethiopia is a nation with a long, venerable and complex history.
Types of insurance in ethiopia insurance top lists. There are, currently, less than 10 government owned and private insurance companies in ethiopia. Ethiopian insurance corporation eic was established by proclamation no. It only requires updating with the help of new data that are constantly retrieved from publishers databases and other sources. Business insurance in ethiopia global strategy and. Fire insurance began soon after 1666, when the great fire of london burned for 5 days, destroying 85% of the city. The requirements to carry on insurance business in ethiopia by abrham yohannes on september, 2011 4 comments taken from law of banking, negotiable instruments and insurance prepare by fasil alemayehu and merhatbeb teklemedhn sponsoredby justice justice and legal system research institute the requirements to carry on insurance. As a result of the insurance decrees and developments since 1961, the insurance industry in nigeria has been growing steadily. It is intended to provide temporary insurance protection to the consumer pending a formal policy being issued by the insurance company.
Please contact kevin wysner in the office of quality and risk before beginning a program in ethiopia to determine any local or international insurance requirements needed for your particular program activities or assets. Introduction to insurance principles of insurance 18 the insured is the person or firm or company confronted by risk and the insurer is a person or firm or company, which specializes in the assumption of risk. Oclcs webjunction has pulled together information and resources to assist library staff as they consider how to handle coronavirus. If youre looking for a free download links of insurance practice and marketing. Ethiopian insurance law archives ethiopian legal brief.
Foreign insurance companies operating insurance business in ethiopia prior to the enactment of the 1970 insurance proclamation 267 iii. The commercial code and the maritme code of ethiopia, insurance 46. List of insurance companies in ethiopia insurancehorn. Between 2002 and 2007, general insurance companies generated an average return on equity of 16. Kevin wysner insurance coordinator office of quality and risk 4047787937. At the time, an agreement was reached between emperor menelik ii and a representative of the british owned national bank of egypt to open a new bank in ethiopia. The emergence of modern insurance in ethiopia 41 3.
Socalled bottomry contracts were known to merchants of babylon as early as 40003000 bce. Ethiopia, officially the federal democratic republic of ethiopia, is a large landlocked country positioned in the horn of africa. Establishment of the first domestic insurance company 44 3. It should be noted that agents work exclusively for the insurance company. The derg borrowed its ideology from competing marxist parties, all of which arose from the student movement. This school of thought defines insurance in terms of. Evolution of insurance companies in ethiopia the history of insurance service is as far back as modern form of banking service in ethiopia which was introduced in 1905.
Ethiopian history, the cradle of mankind, kibran tours. Insurance historical development of insurance britannica. On the other hand, total capital of insurance companies increased by 36. Basic categories of insurances under ethiopian law. The main concept of insurancethat of spreading risk among manyhas been around as long as human existence. Although located in the tropics its high altitudes give much of it a temperate climate. The corporation came into existence by taking over all the assets and liabilities of the thirteen nationalized private insurance companies, with birr 11 million usd 1.