The Association of Ethiopian Insurers has asked the National Bank of Ethiopia (NBE), for permission to stop supervising the insurance industry and that a new body be formed to follow up with the insurance sector, according to sources.
The issue was also raised during the second East African Financial Summit held at ECA a week ago. During that discussion insurance experts claimed the sector was not being given adequate attention because NBE, which regulates the financial industry, focuses on banks.
An expert, who once led a private insurance company, told Capital that the central bank does not fully understand the insurance industry. “This has affected the growth of the insurance sector, which contributes an insignificant percentage to Ethiopia’s GDP,” he said.
“Regulating the insurance industry without the central bank is required for insurance businesses to grow,” an expert explained.