The National Bank of Ethiopia has consulted industry stakeholders on a draft Insurance Proclamation that would overhaul Ethiopia’s insurance framework. The draft would establish an independent Insurance Regulatory Authority, strengthen the focus on policyholder protection and market stability, and gradually open the insurance sector to foreign competition. Discussed at a May 8, 2026 meeting with insurers, brokers and agents, the draft adds mandates aligned with international Insurance Core Principles. It proposes an industry-funded regulator financed through annual levies on insurers based on gross premiums, annual licensing fees and service charges. Other measures include promoting long-term insurance business, strengthening complaint handling and dispute resolution, creating a policyholders’ protection fund, reinforcing market conduct supervision and expanding engagement with regional and international partners. The drafting process began in late 2024 and has since undergone review and consultation with relevant stakeholders.
National Bank of Ethiopia2026-05-15
National Bank of Ethiopia consults on draft insurance law creating an independent regulator and opening the market to foreign competition
The National Bank of Ethiopia consulted industry stakeholders on a draft Insurance Proclamation that would create an independent Insurance Regulatory Authority and gradually open the insurance market to foreign competition. The draft also proposes an industry-funded regulator, stronger policyholder protection, tighter market conduct supervision and a policyholders’ protection fund.