The Ethiopia guide in full
The Ethiopian insurance market in figures
From the NBE's Financial Stability Report (March 2026), covering the year to June 2025:
| Indicator (2024/25) | Figure |
|---|---|
| Gross written premium | ETB 41.1 billion (+43.1%) |
| General insurance | ETB 38.0 billion — 92.5% of premiums |
| Life (long-term) and takaful | ETB 3.1 billion — 7.5% |
| Insurance penetration | 0.3% of GDP (Africa: 3.6%) |
| Motor share of general business | 49.6% |
| Ethiopian Insurance Corporation's share of general business | 33.9% |
| Agents / brokers | 3,077 agents, 54 brokers |
| Loss assessors / surveyors | 80 loss assessors, 2 surveyors |
| Claims ratio, general business | 51.0% (net claims incurred ETB 10.5 billion on net earned premium of ETB 20.5 billion) |
| Total assets of insurers | ETB 84.9 billion (+29.3%) |
Half of all general insurance is motor, and the NBE notes that many vehicle owners buy only the compulsory third-party cover. Life insurance remains very small.
Where to start
| You want to… | Read |
|---|---|
| Insure a car, check a sticker or know the penalty | Vehicle insurance · Insurance check · Third-party vs comprehensive |
| Know which covers exist and which are compulsory | Types of insurance in Ethiopia |
| Understand health cover | Health insurance: CBHI and private cover · Social health insurance (SHI) |
| Choose or check an insurer | The 18 licensed insurers · Largest insurers · Compare two insurers |
| Complain about a claim | Complaints to the NBE (complaintoffice@nbe.gov.et) |
| Drive abroad or travel | Travel insurance and the COMESA yellow card |
| Protect staff and a business | Employment injury and business insurance |
How Ethiopia compares with its neighbours: motor insurance, public health insurance and market size.
A new insurance regulator is on the way
Today the NBE supervises insurers under the Insurance Business Proclamation No. 746/2012, as amended in 2019, and issues insurance directives. A draft Insurance Proclamation published in April 2026 would create a separate Ethiopian Insurance Regulatory Authority and open the sector to foreign investors. As of August 2026 it was awaiting parliamentary approval — it is not law yet.
Frequently asked questions
Who regulates insurance in Ethiopia?
The National Bank of Ethiopia. A draft law would create a separate Ethiopian Insurance Regulatory Authority, but it has not been enacted.
How many insurance companies are there in Ethiopia?
18: the state-owned Ethiopian Insurance Corporation and 17 private insurers, according to the NBE Annual Report 2024/25. Ethio-Re is the national reinsurer.
Is vehicle insurance compulsory in Ethiopia?
Yes. Proclamation No. 799/2013 forbids driving on a road without valid third-party insurance. See motor insurance in Ethiopia.
Which insurance is compulsory in Ethiopia?
Third-party vehicle insurance (Proclamation 799/2013) for every vehicle on the road. Employers must also register employees for social health insurance (Proclamation 690/2010) and are liable for work injuries under the Labour Proclamation. See types of insurance in Ethiopia.
How much of their premium do Ethiopian insurers pay out in claims?
The NBE publishes a sector figure, not one per company: in the year to June 2025 net claims incurred in general insurance were ETB 10.5 billion against net earned premium of ETB 20.5 billion — a claims ratio of 51.0%. It does not say what share of claims were accepted or refused.
Sources
- National Bank of Ethiopia — licensed insurers
- National Bank of Ethiopia — Annual Report 2024/25
- National Bank of Ethiopia — Financial Stability Report, March 2026
- National Bank of Ethiopia — insurance business directives
- Capital Ethiopia, 23 August 2026 — insurance reform awaiting parliamentary approval