The Effect of COVID -19 on Insurance Industry in Ethiopia

Abstract

This study explored the performance of Ethiopian insurance industry prior to the pandemic,current measures taken for adverse effect of COVID-19 by insurance industry, its probablefuture effect and the way forward. Data were gathered from professionals via telephoneinterviews, websites, published articles, reports, and press conference release. The study resultshowed that, before the pandemic the country’s insurance industry is one of the segments thathave been broadly safe, sound, well capitalized and profitable. But, due to rise in the number ofcases, the usual business of insurances in Ethiopia is decreasing. Potential customers are notwilling to be covered for third and damage insurance due to restriction imposed on their usualactivities. Furthermore, if the pandemic remains for additional months, it will have adverseprobable effects on general, life and health insurances. To reduce these adverse effects, theresearchers suggest that, it is better for the industry to work hard and collaborate in this difficulttime with the government in fighting COVID-19. The insurance companies should be attentive,flexible enough to accommodate emerging scenario and communicative to their corestakeholders.