Ethiopia

Market Regulation: Supervised by the National Bank of Ethiopia. Axco’s reports highlight 2026 priorities aimed at opening the sector to foreign investment and improving digital licensing.

Non-Life Market Trends: Motor is the dominant class; however, Axco’s unique data identifies a growing trend in project-based insurance for hydropower and transport infrastructure.

Distribution Channels: Distribution is dominated by domestic insurers; Axco analysis notes that the broker market is in its early growth stage as the economy liberalises.

Key Risks & Outlook: Political stability and capital market depth are the primary variables; Axco’s risk profiling flags currency shortages as a constraint on 2026 expansion.

Insurance companies: Axco Navigator details that there are 18 insurance companies operating in Ethiopia, of which 14 are composites including all the main ones.

Insurance Statistics: Axco reports written premiums in 2023 increased by 40.1% to ETB 20,791 Mn with motor the largest class of business, accounting for 57% of premiums. Insurance penetration stands at 0.24%.

Providing expert analysis, independent market insight and company data on the insurance industry.

Insurance market reports are produced following a country visit with interviews with professionals working in the sector with systematic updates to information throughout the cycle. Covering market developments, macroeconomic factors and comprehensive details of the regulatory environment including relevant taxation as well as market indicators and company statistics.

Axco’s Ethiopia Non-Life Insurance Market Report (P&C) also comprises a detailed analysis of lines of business and sub-classes such as natural hazards, property, construction and machinery breakdown, motor, workers compensation & employers’ liability and liability.

The Life & Benefits Report for Ethiopia includes detail on social security, healthcare, individual life assurance and pensions information as well as market statistics and life company statistics

Key Benefits

• Superior market insights
• Crucial compliance information
• Risk assessment and profitability

Information for Ethiopia can be seen in:

The Ethiopian economy remains largely based on agriculture, in particular subsistence agriculture. Government investment in the hydropower sector is expected to aid electrification and development as new dams have been coming online since late 2016. Coffee exports remain crucial to the economy. Economic growth has been assisted by a boom in the construction industry but remains one of the largest receivers of foreign development aid.

Gross written premiums for the period July 2016 to June 2017 amounted to ETB 7.49bn, of which 95.2% was non-life including personal accident and health, and 4.8% was life.

Seventeen insurance companies operate in the Ethiopian market of which nine are composites. The major company in the market is the state-owned Ethiopian Insurance Corporation (EIC), which was established in 1976 when the industry was nationalised. It had a monopoly of the insurance market in the country until 1994 when the market was reopened.