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Governance, Risk and Compliance - The Ethiopian Insurance Industry

Governance, Risk and Compliance - The Ethiopian Insurance Industry

Summary

The Ethiopian insurance industry is supervised and regulated by the National Bank of Ethiopia (NBE). The NBE was established in 1963, in accordance with the Proclamation 206 of 1963 and began operating in January 1964. The NBE started supervising and regulating the industry after the Monetary and Banking Proclamation No. 99 came in to effect in 1976. The competence rights of the NBE, its obligations and rights to regulate insurance industry are stipulated in the Proclamation No. 746 of 2012, which is the principal legislation governing insurance operation and mediation in the country.

Key Findings

  • The Ethiopian insurance industry is regulated by the NBE
  • Motor third-party liability insurance and professional indemnity insurance for insurance intermediaries are compulsory classes of insurance
  • Composite insurance is permitted in Ethiopia
  • The government does not permit FDI in the insurance industry
  • Non-admitted insurance is prohibited in Ethiopia. However, unauthorized reinsurance companies can reinsure risks located in Ethiopia on a cross-border basis
The report Governance, Risk and Compliance - The Ethiopian Insurance Industry, is the result of extensive research into the insurance regulatory framework in the Ethiopia. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

The report provides -
  • An overview of the insurance regulatory framework in the Ethiopia
  • The latest key changes, and changes expected in the country’s insurance regulatory framework
  • Key regulations and market practices related to different types of insurance product in the country
  • Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the Ethiopia
  • Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations
  • Details of the tax and legal systems in the country
Scope
  • The report covers details of the insurance regulatory framework in the Ethiopia.
  • The report contains details of the rules and regulations governing insurance products and insurance entities.
  • The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
  • The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
  • Gain insights into the insurance regulatory framework in the Ethiopia.
  • Track the latest regulatory changes, and expected changes impacting the Ethiopian insurance industry.
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
  • Understand key regulations and market practices pertaining to various types of insurance product.


1 Introduction
1.1 What is this Report About?
1.2 Definitions
2 Governance, Risk and Compliance
2.1 Legislation Overview and Historical Evolution
2.2 Latest Changes in Regulation
2.3 Legislation and Market Practice by Type of Insurance
2.3.1 Life insurance
2.3.2 Property insurance
2.3.3 Motor insurance
2.3.4 Liability insurance
2.3.5 Marine, aviation and transit insurance
2.3.6 Personal accident and health insurance
2.4 Compulsory Insurance
2.4.1 Motor third party liability insurance
2.4.2 Professional indemnity for insurance intermediaries
2.5 Supervision and Control
2.5.1 National Bank of Ethiopia
2.6 Non-Admitted Insurance Regulation
2.6.1 Overview
2.6.2 Intermediaries
2.6.3 Market practices
2.6.4 Fines and Penalties
2.7 Company Registration and Operations
2.7.1 Type of insurance organization
2.7.2 Establishing a local company
2.7.3 Foreign ownership
2.7.4 Types of license
2.7.5 Capital requirements
2.7.6 Solvency margin
2.7.7 Reserve requirements
2.7.8 Investment regulations
2.7.9 Statutory return requirements
2.7.10 Fee structure
2.8 Taxation
2.8.1 Insurance premium or policy taxation
2.8.2 Withholding taxes on premium paid overseas
2.8.3 Corporate tax
2.8.4 VAT
2.8.5 Captives
2.9 Legal System
2.9.1 Introduction
2.9.2 Access to court
2.9.3 Alternative dispute resolution (ADR)
3 Appendix
3.1 Methodology
3.2 Contact GlobalData
3.3 About GlobalData
3.4 GlobalData’s Services
3.5 Disclaimer
List of Tables
Table 1: Insurance Industry Definitions
Table 2: Ethiopia - Insurance Regulatory Framework Key Features
Table 3: Ethiopia - Life Insurance Regulatory Framework
Table 4: Ethiopia - Property Insurance Regulatory Framework
Table 5: Ethiopia - Motor Insurance Regulatory Framework
Table 6: Ethiopia - Liability Insurance Regulatory Framework
Table 7: Ethiopia - Corporate Tax Rates for the Financial Year 2018
List of Figures
Figure 1: Ethiopia - Insurance Supervision and Control at Various Levels
Figure 2: Ethiopia - Insurance Regulatory Frameworks for Company Registration and Operation

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