Challenges and Opportunities of Life Insurance Business in Ethiopia

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.