The Ethiopian Insurance Corporation (EIC) has announced plans to tackle the country’s security challenges as it aims to achieve its objectives in the current fiscal year. The state-owned insurer revealed that security issues in various parts of the country have hindered its ability to implement planned initiatives in the previous fiscal year.
In its 37th annual management report, the EIC acknowledged that while it had a successful financial year, numerous difficulties prevented it from reaching its full potential in certain sectors. “The results show that we have had a successful fiscal year, but we faced many challenges that limited our reach,” the report stated.
The EIC attributed some of its operational difficulties to ongoing socioeconomic and political instability, particularly in its branches located in northern and western Ethiopia. This instability has significantly impacted the corporation’s ability to operate effectively in these regions.
Despite these challenges, the EIC reported a total premium revenue of 8.6 billion birr for the last fiscal year, achieving 92.4% of its target. This figure represents a growth of 24.3% or 1.7 billion birr compared to the previous fiscal year. Of the total premiums recorded, 8.3 billion birr, or 96.4%, came from the general insurance sector, while the remaining 306.5 million birr, or 3.6%, was from long-term insurance.
The corporation plans to collect 85% of the premiums recorded in the current fiscal year, but it has already achieved 89.7% of that target, marking a performance of 105.5% compared to the previous year. The EIC also reported a total payout of 2.8 billion birr for claims related to accidents involving customers’ property and lives, which represents an 18.2% decrease from the previous year.
The EIC’s management has emphasized the need for a robust strategy to address the security challenges that have affected its operations. The corporation is committed to enhancing its services and expanding its reach, particularly in areas that have been severely impacted by instability.
As the EIC moves forward, it aims to implement measures that will not only stabilize its operations but also contribute to the overall recovery and growth of the insurance sector in Ethiopia. The organization is hopeful that by addressing these security challenges, it can better serve its customers and achieve its financial objectives in the coming year.
