traveling the globe in tranquil mind

The movement and pace in human interaction increases in direct proportion to developments in science and technology. As the world shrinks due to the ever growing ease of global travel, a relatively novel insurance product has been introduced tailored to this specific sub-sector.
Travel insurance is a comprehensive, global and affordable insurance scheme for travelers and is an internationally integrated collaboration of world class insurers.
Nyala Insurance S .C. has pioneered this modern product to Ethiopia. To explore the details, Capital’s Tedla Desta met with Eyob Mihrete, General Manager of Nyala Insurance. Excerpts:

Capital – Where does Nyala Insurance stand in Ethiopia’s insurance industry?
Ato Eyob – Nyala Insurance was established after the sector was liberalized by the government in July 1995. It has 12 years of successful growth and has over 16,000 clients to its name. We provide general, long term and life insurance policies as well as other services.

Capital- What would you describe as notable achievement(s) of Nyala Insurance?
Eyob – Our major achievement is that we are a successful and progressive insurer. We have consistently registered comfortable profit margins ever since we were established. Nyala Insurance is a company with a strategic focus and this has been an additional source of strength for our company.

Capital – You have recently introduced travel insurance as your latest product.
Eyob – Yes, Nyla Insurance has exclusively introduced Travel Insurance to the Ethiopian market. Actually, travel insurance had been available but only for the Schengen countries (E.U). However, the travel insurance offered by our company will also be useful for Ethiopian diaspora arriving for the new millennium festivities and for others who visit Ethiopia for various reasons. This comprehensive travel insurance has been launched as of April 27, 2007.

Capital – We understand that the premium charged amounts to only ETB 260. Should it then be concluded that your company will honor claims that could potentially run into large sums?
Eyob – There are two main factors that determine the level of premium and claims expected. One is the particular destination of the traveler and the other is the length of stay. The ETB 260 is limited to a stay with a duration of 15 days in Europe by a person who is up to 65 years of age. We do consider the age of the insured traveler. The elderly will be charged a higher premium. Of course all travelers will also be charged more for global coverage.
However, travel insurance premiums for African destinations are even lower than ETB 260. Becoming travel insured entitles travelers to many benefits. Among them are medical treatment and hospitalization expenses in case of health emergencies, transport and or repatriation in event of accidents/ disasters, emergency dental care, in-flight checked in baggage loss coverage, return home, travel of one immediate family member, delivery of medicines and urgent messages, legal defense and forwarding of baggage and delayed departure costs.
These are the major benefits of Nyala’s travel insurance package within a broad ranging cover. By the way, Nyala travel insurance can be available with a single phone call through our partner - global re-insurer, MAPFRE Asistencia of Spain. It is this company that handles claims throughout the world with its round the clock available telephone line- 00-353-91- 560- 628.
Mapfre Asistencia has direct representation in 60 countries with 40 more nations where it is represented indirectly. This global network enables efficient and timely insurance service.

Capital – Some would still maintain the premium charged is impractical to be able to cover all potentialities.
Eyob – It may seem so, but let’s not forget that, after all, insurance is required only in unfortunate situations. Certainly, the great majority of travelers complete their trips without mishaps. The unfortunate travelers who do face emergency situations are covered by the premiums paid by those who have completed an ‘uneventful’ and therefore safe trip.

Capital – How practical is travel insurance in today’s dangerous world?
Eyob – I agree with you that our world is indeed dangerous but whether in travel or day to day life, we live amidst countless risks and potentialities.
However, risk does not necessarily mean emergencies are to occur. Travel Insurance has been a proven and tried method that has operated successfully for years. The scheme of travel insurance is vast and let’s not forget that the cover is only accidental. By the way, I must mention here that travel insurance does not cover claims arising from existing diseases. It does cover accidental illness and the probable risks, so in terms of probability, it has been researched and proven to be effective.

Capital –Describe to us the benefits of travel insurance coverage closer to home.
Eyob – Travel insurance has become not only an operation but also a very important necessity. The Schengen states have agreed to prohibit travel to their countries without travel insurance; this means that obtaining a visa is dependent on being travel insured. Being so has the great advantage of obtaining insurance cover within the Schengen Countries. In economic terms, there is an indirect flow of foreign exchange earnings to the Ethiopian economy. I believe travel insurance has enormous advantages for Ethiopian travelers.

Capital – Nyala Insurance has pioneered this insurance product. May we ask why travel insurance came to Ethiopia so late in the day?
Eyob- Let me say that in the industry, travel insurance is itself somewhat of a ‘new’ thing. The product came to realize huge interest and growth as the global boom in travel continues. As travel has become cheaper, easier and quicker; more people are criss-crossing the globe. This naturally means the risks to travelers increase. Travel insurance is a phenomenon of technology and the worldwide tourism industry.
Another factor that led to the introduction of travel insurance in Ethiopia is the Schengen stipulation requiring such coverage by travelers to their territory.

Capital – What special arrangements, if any, has Nyala Insurance made with countries or companies in the areas of coverage?
Eyob – As Nyala Insurance took the lead in introducing this product, it primarily formed links with Mapfre Asistencia. However, there are other companies with which we have arrangements for the international facilitation of other insurance products and services. The companies we have ties with are themselves re-insured with world class insurers.

Capital – Was travel insurance in the pipeline all along or was it spurred on to fruition by the new third millennium?
Eyob – We had already made a plan due to the Schengen requirement but of course, the new third millennium did develop huge interest in broadening the cover to diaspora members and visitors to the festivities.

Capital –How popular is travel insurance currently and what are your growth expectations?
Eyob – Although the product still needs a lot of promotional work, we have registered a growth in demand for this unique worldwide travel insurance coverage. There is also the Schengen factor – from 30-40,000 Ethiopians travel to those countries each year.

Capital - What new insurance products and services can we expect down the road?
Eyob - Nyala Insurance will continue in providing the best, most up to date and comprehensive products to the public. We are engaging in the floriculture sector for example, an area which has increasingly become important to our overall economy. Another exciting area that interests us is on ways whereby insurance coverage can be made available to agriculture – and especially to small scale farmers in rain dependent areas. This of course is a scheme that requires a vast scale.

Capital – What kind of service can a diaspora Ethiopian expect?
Eyob - Basically, insurance coverage for diaspora Ethiopians consists of health/ medical insurance. It was two years ago that we began to offer this coverage in North America for the diaspora to sponsor their family members here.
The culture of insurance is not deeply margined here as it is in the west. Ethiopians abroad are aware of the benefits of health insurance and have the resources to send 200 USD to insure their families back home.

Capital –Any comments in closing?
Eyob - I urge all to help create public awareness of the great benefits of being insured. Most people in our country live on less than one dollar a day. This is also true in many other African nations but there is a difference as their insurance coverage is twenty- thirty times higher than in Ethiopia.
To give you some idea of how low insurance penetration is in our country, neighboring Kenya has over 40 insurance companies for a population less than half that of Ethiopia, which has just nine private and one state insurance operators.
Therefore, we are working on various initiatives to create this awareness about insurance. These include philanthropic activities such as school scholarships.