The provisions of a Proclamation to provide for the Licensing and
Supervision of Insurance Business No. 86/1994 govern the terms and conditions for
undertaking insurance business. As in the case of banking, the Proclamation empowers the
National Bank of Ethiopia (the Supervisory Authority) to issue various Directives
necessary to ensure the safe and sound operation of insurance companies. In order to carry
on insurance business in Ethiopia, any person will have to meet the following conditions:
it is a company;
its share capital is not less than:
- Birr 3,000,000 if the business
to be done is general insurance business;
Birr 4,000,000 if the business to be done is long-term
insurance business;
Birr 7,000,000 if the business to be done is both
general and long-term insurance business.
- it has paid up in cash and
deposited in a bank in its name the full amount of the capital stated above;
it has obtained a license from the National Bank of
Ethiopia;
its appointed principal officers meet the standard set
by the National Bank of Ethiopia;
it meets other requirements of the Proclamation or
prudential Directives issued by the National Bank of Ethiopia.
At present no foreign national is permitted to undertake insurance
business in Ethiopia.
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