Motor insurance has become unaffordable due to the legal requirement of paying full-year premiums in advance, while making claims similarly has become complex, lament experts who closely follow the insurance industry.
Cognizant of this dilemma, FSD Ethiopia in collaboration with FSD Africa and the National Bank of Ethiopia (NBE) recently organized a knowledge series that took place at Sheraton Addis Hotel on July 14, 2023 under the theme “Innovation for Resilience -Shaping the Future of Insurtech in Africa”.
As the local experts underlined, the motor insurance sector remains unaffordable for many individuals due to various factors such as high premiums, limited coverage options, and the overall cost of maintaining a vehicle.

“This is particularly true for most of drivers who often face higher insurance rates,” local experts voiced out their concerns during the knowledge series.
As stated on the stage, it is hard to pay for insurance yearly.
“Payments are in cash, a complex and lengthy claim process. The insurance subscription and claim declaration process is primarily non-digital,” they argued.
“Although the third-party cover is reasonably priced, our policyholder will opt for a flexible payment option with other products such as health, life, and pension embedded in the prices. It takes up to 3 months to get the payout for a claim and the process requires 4 touch points before. The buying process is manual and so is the claim process,” they elaborated on the backwardness.
Though the financial sector is undergoing various reforms and changes, lack of information and dialogue has been stated as one of the underlying challenges in Ethiopia’s financial ecosystem.
As Solomon Desta, vice governor of NBE indicates, the insurance sector has contributed only less than 1 percent of the total GDP of the country, “There is a need for greater innovation and market development and despite the recent financial liberalization, the insurance industry in Ethiopia remains relatively under developed.”
“NBE is working in order to set up an independent body with a primary focus on encouraging the industry,” he added.
During the discussion, it was strongly suggested that comprehensive insurance need to be affordable. Furthermore, the claim process was urged upon to be reduced to 24 hours via digitization, while an introduction to digital payment into the insurance buying and claims process was seen as a the best fit.
With regards to NBE’s work to establish an independent governing body, experts received the gesture with opposition citing that such a body should be formed by insurance professionals and not bankers and further added that the sector has been derailed because it is led by the national bank as opposed to its own insurance body.
The event brought together the insurance ecosystem, including innovators, investors, corporate partners, and regulators and it aimed to foster growth, facilitate strategic partnerships, and establish an enabling regulatory environment that supports the advancement of the insurance sector in Africa.
Ermias Eshetu, CEO of FSD Ethiopia at the event stated, “FSD Ethiopia is proud to collaborate with FSD Africa to host the BimaLab Africa Midpoint Event and Innovation for Resilience Conference. This event presents an opportunity for us to showcase Ethiopia’s insurance sector and contribute to the advancement of the broader African insurance landscape. By embracing innovation, fostering strategic partnerships, and creating an enabling regulatory environment, we can collectively drive positive change and enhance societal resilience.”
BimaLab, established in 2020, has been instrumental in addressing the key challenges faced by insurtech and insurance start-ups in Africa. As an insurtech accelerator, BimaLab has connected talented innovators with mentors, industry experts, technology partners, regulators, and investors. In its three years of operation, BimaLab has supported 40 insurtech ventures, reaching one million customers and raising USD 3 million in funding. Currently, BimaLab Africa is accelerating 23 ventures across 9 African countries including Ethiopia through the BimaLab Africa Insurtech Accelerator Programme.
In this regard, NBE’s Vice Governor, expressed his delight in supporting the BimaLab Africa Midpoint Event and Innovation for Resilience Conference, stating, “Recognizing the importance of innovation in addressing the challenges faced by the insurance industry, this event marks a significant milestone in the collective efforts to drive innovation, foster resilience, and transform the insurance landscape in Africa.”
FSD Ethiopia recently launched the Knowledge Series, a monthly platform for financial industry stakeholders to come together, exchange views, share knowledge, and generate insights on critical topics important for the development of the financial sector.

Ethiopia gets a top seat at the premier continental forum of lawyers and lawyers’ association in Africa.
In a general annual assembly held in Livingstone, Zambia from 5-8 July 2023, Tewodros Getachew, Interim President of Ethiopian Federal Bar Association (EFBA), was elected as the vice president of Pan African Lawyers Union (PALU).
Tewodros who now leads the EFBA, an association that was formed early last year under article 57 of the federal advocacy service licensing and administration proclamation 1249/2021, as the first statutory bar association in Ethiopia, has now raised the country’s flag high by taking one of the top seats at PALU, for the first time in close to two decades.
PALU’s Vice president elect received nominations from the East African Law Society, and is the first to have such a huge position to lead the continent whilst representing Ethiopia since the formation of PALU in 2002 by African bar leaders and eminent lawyers, to reflect the aspirations and concerns of the African people and to promote and defend their shared interests.
The regional society that includes seven countries has over 28,000 professional members, and one would have to date 21 years back, to when an Ethiopian had held a significant position in the union courtesy of prominent lawyer, Getachew Kitaw who was elected to serve as Secretary General for the Union. Over the last 18 years, that was however not the case as Ethiopia did not have any significant position on the continental lawyers association.
As Tewodros indicates, PALU is the biggest platform on the sector in the continent and its influence has grown in the past decade at the global stage.
“Ethiopia was out of the top leadership for close to two decades. As is known, taking the leadership position would have multiple advantages for the country and the sector in general,” he told Capital.
“Becoming an executive member would have an advantage in taking stake on policy decision at the international stage and would also magnify the role and influence of Ethiopian professionals at the continental level,” the EFBA leader explained whilst also echoing that it would encourage young and upcoming lawyers.
EFBA’s Interim President stated similar statutory bar associations have close to half a decade history in other African countries while the Ethiopian one remains very young in contrast to its other African peers.
There were several struggles in establishing the statutory bar association, for instance, there was lack of interest in the previous political leadership which made the formation of the association very challenging up until the 1249/2021 proclamation, which was ratified about two years ago.
“As a very young association, becoming an executive member of the continental union is a big achievement and it is also vital to disseminate our voice on the international stage besides promoting EFBA,” Tewodros, one of the young but prominent lawyers in the country explained.
According to the proclamation, the statutory bar association would have multiple responsibilities and powers including; contributing to the advancement and development of quality of law education, rule of law, enforcement of human rights and the profession of advocacy service and the Ethiopian legal system as a whole, conduct studies with regard to advocacy service, implement the study and submit the same to the concerned body and monitor the implementation; and accredit those institutions who offer continued legal training.
PALU, which was formed 21 years back sought at its core to reflect the aspirations and concerns of the African people and to promote and defend their shared interests.
Its membership comprises of the continent’s over five regional lawyers’ associations, over 54 national lawyers’ associations and over 1,000 individual lawyers spread across Africa and in the Diaspora, working together to advance the law and the legal profession, rule of law, good governance, human and peoples’ rights and socio-economic development of the African continent.