Deputy PM Urges African Insurance Industry to Drive Dev’t, Protect Policyholders
Addis Ababa, May 26, 2025 (FMC) – Ethiopia’s Deputy Prime Minister Temesgen Tiruneh urged Africa’s insurance industry to take a leading role in driving economic development and safeguarding policyholders.
He made the call today at the official opening of the 51st African Insurance Organisation (AIO) Conference and Annual General Assembly held in Addis Ababa.
Addressing over 1,900 delegates from 93 countries—including regulators, insurers, reinsurers, and policymakers—Deputy PM Temesgen emphasized the urgent need for the insurance sector to evolve from a peripheral service into a cornerstone of Africa’s economic growth.
“The challenges posed by rising national debts are not mere background noise for insurers; they shape the entire investment climate, asset safety, and consumer confidence,” Temesgen said. “Insurance must become a safeguard for families, a driver of credit, and a magnet for investment.”
Highlighting Ethiopia’s own ongoing transformation, he pointed to the country’s homegrown economic reform agenda, describing it as a historic transformation driven by a young, urbanizing population, a fast-growing digital economy, and strong government backing for private sector growth.
“We are modernizing our economy, improving competitiveness, and unleashing the private sector,” he noted. “We are building an environment that rewards innovation, encourages trade, and welcomes investment.”
Among the key initiatives supporting this vision is the establishment of an independent insurance regulatory authority, created to promote innovation, ensure effective oversight, and protect policyholders.
Deputy PM Temesgen also drew attention to recent legal developments, including the government’s endorsement of a draft proclamation on the use and ownership of immovable property, which will open new avenues for financial and insurance solutions in sectors such as housing, infrastructure, and real estate.
While acknowledging that Ethiopia’s insurance market remains underdeveloped with low penetration, he emphasized the country’s strong fundamentals: a young and urbanizing population, an expanding digital economy, and a leadership fully committed to reform and market openness.
“Our government stands fully behind this transformative journey,” Temesgen assured, urging investors to explore Ethiopia’s emerging insurance market.
He expressed deep appreciation to the African Insurance Organisation for its five decades of leadership in advancing the continent’s insurance sector and encouraged delegates to experience Ethiopia’s rich history and culture during their stay.
The 51st AIO Conference, held under the theme “Balancing the Books: Africa’s Debt Problem – Why Does Country Debt Impact Insurers?”, runs from May 24 to 28, 2025. It provides a critical platform for high-level dialogue, innovation, and collaboration aimed at advancing financial inclusion and economic growth across Africa.