Photo: Dvermeirre, Wikimedia Commons, CC BY-SA 4.0Insurance in Ethiopia: the rules, the insurers, your rights
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 |
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.
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.
Guides for Ethiopia
Vehicles
- Vehicle insurance in Ethiopia: Proclamation 799/2013 explainedProclamation 799/2013: what third-party cover must include, the sticker, emergency treatment and the penalty.
- Third-party vs comprehensive vehicle insurance in EthiopiaEthiopia's compulsory cover already includes property damage. What comprehensive adds: your own vehicle.
- How to check vehicle insurance in Ethiopia: the sticker and the certificateThe windscreen sticker, the insurer's 24-hour confirmation, police powers and the Insurance Fund.
Health and life
- Health insurance in Ethiopia: community-based cover and private plansCBHI reached 63 million people in 2024/25. How it works and where private cover fits.
- Life insurance in Ethiopia: a small market, what to knowLife cover is only 7.5% of premiums in Ethiopia. The types of policy and the questions to ask.
Home, business and travel
- Employment injury and business insurance in EthiopiaEmployers are liable regardless of fault: five times annual wages for total disablement or death.
- Driving abroad from Ethiopia: the COMESA yellow cardThe yellow card for cross-border driving: what it covers, the national bureau and what to do after an accident.
Your rights
- Insurance companies in Ethiopia: the 18 licensed insurersThe 18 insurers licensed by the NBE, oldest to newest — from Ethiopian Insurance Corporation (1975) to Zemen (2020).
- How to complain about an insurer in EthiopiaThe insurer has 10 business days to answer, then the NBE complaint office takes over.
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.
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