Demand for life insurance service in the country has shown a steady uptick due to rapid urbanization and improvements in the livelihoods of the society. The number of people who need life insurance services in Ethiopia, particularly in urban areas has been increasing over time creating strong potential for the sector’s growth. The number of people who need life insurance services in Ethiopia, particularly in urban areas has been increasing over time creating strong potential for the sector’s growth. The introduction of life insurance service in the country and its contribution to the national economy have not reached at the desired level. Though the share of general insurance into Ethiopia’s Gross National Product is significantly enhanced, the share of life insurance is still minimal.
The limited attention that has been given to the insurance industry in general and life insurance in particular is the primary factor for the former’s underperformance and impeded the country from tapping the sector’s untapped potential. To this end, close partnership has been formed with different international organizations and research institutions. A policy which helps to address challenges the life insurance sector has been encountered thereby boosting its contribution in the national economy.