Abstract:
This study is conducted on the challenges and opportunities of life insurance business in Ethiopia. The study is
mainly conducted using primary data. Eight insurance companies from the total of 17 insurance companies, which are
providing life insurance services, are included in the study as a sample. The study found that of awareness of people towards
life insurance, religious, habit of saving of the people and low level of urban to total population ratio and illiteracy are the
major demographic challenges of life insurance business in Ethiopia. It was indicated in the study that low level of income of
the society and the interest are the major economic challenges for the development of life insurance whereas the banking
sector development, a decrement in an annual inflation rate can be the opportunities that can positively help the development
of life insurance business in Ethiopia. The study recommended that insurance companies should create awareness with respect
to life insurance, training should be provided for insurance officials and strong training centre should be established.
