Photo: Lucy Shaw, Wikimedia Commons, CC BY-SA 4.0Life insurance in Ethiopia
A small market, what to know
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The life market in figures
From the NBE's Financial Stability Report (March 2026), year to June 2025:
| Indicator | Figure |
|---|---|
| Life gross written premium | ETB 2.6 billion (ETB 0.9 billion in 2020/21) |
| Takaful (sharia-compliant) premium | ETB 0.5 billion |
| Life and takaful share of all premiums | 7.5% (general insurance: 92.5%) |
| Insurers writing life business | 14 composite insurers (4 write general business only) |
| Minimum paid-up capital for long-term business | ETB 0.1 billion, to be reached by the end of June 2027 |
Among the sector's main risks the NBE lists 'market penetration, specifically in the life class of business'. Life premium has nearly tripled in four years, but from a very low base.
The main types of life policy
| Type | What it does |
|---|---|
| Term life | Pays a lump sum if you die during the term |
| Endowment / savings | Pays at the end of the term, or earlier on death |
| Credit life | Repays a loan if the borrower dies — often required by banks |
| Group life | Cover arranged by an employer |
| Family takaful | Sharia-compliant life cover, through takaful windows |
An employer's group life policy is different from what the law already requires: under the Labour Proclamation, an employer pays five times the annual salary to the dependants of a worker killed at work, whatever the fault — see employment injury insurance.
Who sells it
According to the NBE's Financial Stability Report, 14 of the 18 insurers write both long-term (life) and general business. The full list, with a profile for each company, is on our insurers page; the oldest insurer, Ethiopian Insurance Corporation, and Ethio-Life & General Insurance are among the names people search most. A first full takaful insurer was being formed in 2025, according to the NBE.
What to ask before you sign
- Is the company on the NBE list of insurers, and does it write life business?
- Is it term (pure protection) or savings? What exactly is guaranteed on a savings policy?
- What happens if you stop paying: grace period, lapse, surrender value?
- Can you cancel a new policy and get your premium back, and within how many days? Get the answer in writing.
- Who are the beneficiaries, and are they named correctly?
- What documents will your family need to claim, and how long does the insurer take to pay?
Use our life insurance checklist. If a claim is refused, the insurer must answer a written complaint within 10 business days; after that, complain to the NBE.
Already insured?
Next step
Frequently asked questions
Is there a cooling-off period for life insurance in Ethiopia?
We did not find one in Ethiopian law or in the NBE's consumer protection directive. Ask the insurer before you sign.
How big is life insurance in Ethiopia?
Life premiums were ETB 2.6 billion and takaful ETB 0.5 billion in the year to June 2025 — together 7.5% of all premiums, according to the NBE.
How many insurers sell life insurance in Ethiopia?
14 of the 18 licensed insurers are composite companies that write both life and general business; 4 write general business only (NBE, March 2026).