The draft Insurance Proclamation marks the beginning of a new era for Ethiopia’s insurance industry, introducing major reforms such as the establishment of an independent Insurance Regulatory Authority (IRA) and the gradual opening of the sector to foreign competition.
On May 8, 2026, the National Bank of Ethiopia (NBE) held a consultative meeting with key industry stakeholders, including CEOs of insurance companies and executives from brokers’ and agents’ associations, to discuss the draft Proclamation and gather feedback. The discussion session was chaired by H.E. Solomon Desta, Vice Governor for the Financial Stability Cluster, and moderated by Mr. Belay Tulu, Director of the Insurance Supervision Directorate.
The drafting process for the Proclamation began in late 2024 and has since undergone extensive review, consultation, and discussion with relevant stakeholders.
A key feature of the draft Proclamation is the establishment of an independent Insurance Regulatory Authority. The Authority will primarily focus on protecting policyholders’ interests, promoting a fair, safe, efficient, and stable insurance market, and contributing to the overall stability of the financial sector. It will also play a central role in fostering a competitive, sustainable, and inclusive insurance industry.
The proposed funding model for the Authority is industry-based, designed to ensure its financial independence. Funding sources will include annual levies on insurers based on gross premiums, annual licensing fees, service charges payable by licensees, as well as donations, gifts, loans, and advances.
The draft Proclamation also introduces additional mandates aligned with international Insurance Core Principles (ICPs), reflecting a dual focus on market stability and sector development. Among the major milestones included are the opening of the insurance sector to foreign competition, measures to promote long-term insurance business, the establishment of stronger complaint handling and dispute resolution mechanisms, and the creation of a policyholders’ protection fund. The draft also emphasizes enhanced engagement with regional and international partners and stronger market conduct supervision.
Participants at the consultative meeting expressed their appreciation to the National Bank of Ethiopia for undertaking what they described as a historic and transformative initiative for the country’s insurance industry.
Draft Proclamation that was discussed during the consultative meeting can be viewed below.
