- Around 30 senior executives from South African insurers—including Discovery, Old Mutual, Santam, Absa Group and Sanlam—visited Ethiopia and predicted major insurers will enter the market within five years.
- Ethiopia’s draft insurance law would allow foreign insurers, introduce regulatory sandboxes, establish an independent regulator and authorise Takaful (Islamic insurance) products.
- Executives noted insurance penetration is low but digital and underserved markets offer huge potential.
Market Impact:
Opening the insurance sector could attract foreign capital, introduce innovative products and increase competition. Improved digital infrastructure may expand access to previously underserved consumers.
Key Numbers:
- 30— executives visiting Ethiopia.
- 0.5% (approx.)— estimated insurance penetration in Ethiopia, indicating large growth potential.
Business Signal:
International interest points to opportunities for new entrants and signals Ethiopia is opening its financial sector, potentially accelerating digital insurance and inclusive products.