Assessment of Corporate Governance Practice in Selected Ethiopian Insurance Companies

Abstract

The main purpose of this study is to examine corporate governance practices in Ethiopian insurance companies. The study applied descriptive research design. The data was collected from employees of Ethiopian insurance companies via questionnaires. The study used quantitative methods of data analysis. To address the research objective the study applied convenience sampling technique. The result of the study showed that in terms of Board characteristics (educational qualification, board size, and board composition and board meetings) there is a greater internal corporate governance practice in Ethiopian insurance companies. Similarly, significant numbers of respondents approved Ethiopian insurance companies have highest internal corporate governance practice in nomination and audit committee issues. Nevertheless, there need to be exert efforts to diminish the bold disagreement issues on the follow upping of audit findings, independency of audit committee, behavior and trustfulness of the nomination committee members. By and large, the study concludes that there is a significant internal corporate governance practice in Ethiopian insurance companies. Finally, among others the study recommended that the Nomination Committee should adhere and works strictly in light of applicable laws, regulations, the National Bank directives and the insurer’s own articles and memorandum of association, policies and procedures.