Bahir Dar University

College of Business and Economics

Department of Accounting and Finance

Title: Structure, Activities and Other Key Facts of Insurance Industry in Ethiopia

Course: Advanced financial markets and Institutions

Review group assignment

Group members ID#:

Shekur Wosen Muhammed……………….BDU1301631

Endris Yimer Abegaz………………….…BDU1301591

Dazo Dechaso………………………..…..BDU1208328

Tayachew Mengistie……………………. BDU1208335

June, 2021 GC.

Submited to: instructor Tilahun Aemiro (PhD). Bahir dar, Ethiopia
Contents pages
Executive summery..................................................................................................................................ii
Introduction:...............................................................................................................................................1
The history of insurance..........................................................................................................................2
Overview of the Ethiopian Insurance Industry........................................................................................2
The insurance market in Ethiopia............................................................................................................4
Organizational Structure of Ethiopian Insurance Corporation.................................................................5
Characteristics of insurance.....................................................................................................................5
BENEFITS OF INSURANCE TO SOCIETY.....................................................................................................8
Types of insurance...................................................................................................................................9
Regulatory differences.......................................................................................................................10
Opportunities and challenges for insurance in Ethiopia........................................................................11
Conclusion and Recommendation.........................................................................................................13
Conclusion.........................................................................................................................................13
Recommendation..............................................................................................................................13
Reference..........................................................................................................................................14

i
Executive summery
Insurance business is a business of collecting small amount of money from many people to make
them safe and more certain of recovery from financial losses. if we see the history, insurance was
most probably emerge in Babylonian, Chinese, and Indian traders practiced methods of transferring
or distributing risk in a monetary economy in the 3rd and 2nd millennia BC, respectively. Also
Ethiopia experience insurance traditionally by the means of iddir but modern insurance was in
function during the three consecutive regimes namely the period of emperor Haile Selassie, the
derge regime and the EPRDF currently Prosperity party. Beyond the story this paper compress main
facts related with insurance in Ethiopia and the world including functions, activities and types of
insurance also include opportunities and challenges of insurance industry in Ethiopia. The main
opportunities and challenges are large un-served market, weak financial system, limited skills,
capacity and incentive to push market extension, Limited experience, autonomy problem and the
like. To come up with the solution we recommend something related with these opportunities and
challenges may be implemented by individuals, government, current supervisory board or other
concerned body.

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iii
Introduction:
Insurance is a means of protection from financial loss. It is a form of risk management, primarily
used to hedge against the risk of a contingent or uncertain loss. ‘’Insurance is an essential financial
tool that enables better risk management of uncertain financial outcomes. For insurance services
and products to provide sufficient financial protection, it is imperative that insurance markets are
sound and safe for policyholders, with a robust institutional framework of insurance regulation and
supervision’’ (OECD; 2018)

An entity which provides insurance is known as an insurer, an insurance company, an insurance

carrier or an underwriter. A person or entity who buys insurance is known as an insured or as
a policyholder. The insurance transaction involves the insured assuming a guaranteed and known -
relatively small - loss in the form of payment to the insurer in exchange for the insurer's promise to
compensate the insured in the event of a covered loss. The loss may or may not be financial, but it
must be reducible to financial terms, and usually involves something in which the insured has
an insurable interest established by ownership, possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insurer will compensate the insured. The amount of money charged
by the insurer to the policyholder for the coverage set forth in the insurance policy is called
the premium. If the insured experiences a loss which is potentially covered by the insurance policy,
the insured submits a claim to the insurer for processing by a claims adjuster. The insurer
may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to
carry some of the risks, especially if the primary insurer deems the risk too large for it to carry.

Insurance involves pooling funds from many insured entities (known as exposures) to pay for the
losses that some may incur. The insured entities are therefore protected from risk for a fee, with the
fee being dependent upon the frequency and severity of the event occurring. In order to be
an insurable risk, the risk insured against must meet certain characteristics. Insurance as a financial
intermediary is a commercial enterprise and a major part of the financial services industry, but
individual entities can also self-insure through saving money for possible future losses. (Gollier, C.
& Treich, N. 2003).

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The history of insurance
Babylonian, Chinese, and Indian traders practiced methods of transferring or distributing risk in a
monetary economy in the 3rd and 2nd millennia BC, respectively. Chinese merchants traversing
treacherous river rapids would redistribute their wares across many vessels to limit the loss due to
any single vessel's capsizing. The Babylonians developed a system recorded in the famous Code of
Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant
received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the
lender's guarantee to cancel the loan should the shipment be stolen or lost at sea.

In modern period, Insurance became more sophisticated in Enlightenment era Europe, and
specialized varieties developed. Some forms of insurance developed in London in the early decades
of the 17th century. For example, the will of the English colonist Robert Hayman mentioned two
"policies of insurance" taken out with the diocesan Chancellor of London, Arthur Duck. Of the
value of £100 each, one related to the safe arrival of Hayman's ship in Guyana and the other was in
regard to "one hundred pounds assured by the said Doctor Arthur Ducke on my life".( Robert
Hayman, 1628). It traces the development of the modern business of insurance against risks,
especially regarding cargo, property, death, automobile accidents, and medical treatment.

Overview of the Ethiopian Insurance Industry

If we see the trend of insurance industry; it historically been influenced by many factors, either an
internal or external nature, which have caused not only great losses but also have jeopardized the
very existence of insurance and reinsurance companies. Recently, particularly during the last
decade, when the development of the global economy and human society have reached a
tremendous speed not recorded so far in human history, insurance companies come under growing
pressure to manage, in an adequate manner, their profitability, risk and consumer loyalty in a
challenging and ever-changing market. In the risky modern world, the basic characteristic of the
insurance industry is the increased probability that the unexpected will happen. (Vladimir Njegomir
& Boris Marovic: 2012).

In Ethiopian context, Smallholder farmers are devoid of effective ways of managing numerous risks
they encounter in their daily lives. One response mechanisms common among rural households is
reliance on network-based collective action arrangement driven by motives of reciprocity and
altruism. The indigenous financial institutions constitute a striking example of risk-sharing and risk-

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pooling arrangements widely practiced by the bulk of rural communities in Africa. Of these
arrangements, the Ethiopian iddir can be considered as a unique and viable institution worth
investigation to understand its nature and logic. (Dejene Aredo, 2010).

Existence of iddir and iqub signals need for risk management, but much of it at a level difficult to
serve by commercial players. The highly prevalent nature of iddir signals Ethiopian’s risk
management needs and some familiarity with insurance-like mechanisms that has been generated
over time. There are indications that iddir are providing insurance-type cover that extends beyond
only funeral, e.g. existence of health iddir. While this could bode well for future development of the
insurance sector (if appropriately managed), it does not present an immediate demand for insurance
and is unlikely to do so for the foreseeable future. The current premiums contributed to iddir and
the benefits provided are very low and likely to be below levels that insurers can currently
profitably serve (particularly given current levels of inefficiencies in the insurance sector). (Anja
Smith & Doubell Chamberlain; 2010)

The Ethiopian insurance industry does not have a long history of development despite the country’s
long history of civilization. Modern forms of insurance service which were introduced in Ethiopia
by Europeans, trace their origin as far back as 1905 when the bank of Abyssinia began to transact
fire and marine insurance as an agent of a foreign insurance company. The number of insurance
companies increased significantly and reached 33 in 1960. At that time insurance business like any
business undertaking was classified as trade and was administered by the provisions of the
commercial code. This was the only legislation in force in respect of insurance except the maritime
code of Ethiopia that was issued to govern the operations of maritime business and the related
marine insurance. The law required an insurer to be a domestic company whose share capital (fully
subscribed) to be not less than Birr 400,000 for a general insurance business and Birr 600,000 in the
case of long-term insurance business and Birr one million to do both long-term & general insurance
business. Non-Ethiopian nationals were not barred from participating in insurance business.
However, the proclamation defined domestic company as a share company having its head office in
Ethiopia and in the case of a company transacting a general insurance business at least 51% and in
the case of a company transacting life insurance business, at least 30% of the paid-up capital must
be held by Ethiopian national companies. Four years after the enactment of the proclamation, the
military government that came to power in 1974 put an end to all private entrepreneurship. Then all

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insurance companies operating were nationalized and from January 1, 1975 onwards the
government took over the ownership and control of these companies & merged them into a single
unit called Ethiopian Insurance Corporation. The insurance sector during the command economic
system was characterized by monopoly of the sector by the government, lack of dynamism and
innovation, volatile premium growth rates and reliance on a couple of classes of insurance business
(motor and marine) for much of gross premium income. The nationalization of private insurance
companies, the restrictions imposed on private business ventures, and management of the insurance
sector had significant adverse impact on the development and growth of Ethiopian insurance
industry (www.nbe.org.et).

It is important to note that before October 1975, during the Imperial regime, there were thirteen
insurance companies operating in Ethiopia. In November 1975 these thirteen companies were all
nationalized and consolidated into one company, the Ethiopian Insurance Corporation (Ethiopian
Yearbook, Insurance Section). When the Derge regime ended in the early 1990s, the establishment
of private insurance companies was once again allowed. Before the 1975 change and during the
Derge regime, the activity of insurance was governed only by the Commercial Code of 1960.
However, the new phase called for new insurance regulation and the Licensing and Supervision of
Insurance Business Proclamation No. 86 was promulgated in 1994. (Anja Smith & Doubell
Chamberlain; 2010).

The insurance market in Ethiopia

Small market, with very small life insurance market Insurance premiums (including both life and
general insurance) totaled US$105m in the 2006/07 financial year (ending June 2007), equating to
about 0.2% of GDP. Life insurance premiums constituted only US$6m or 6% of total premiums in
2007, while general insurance premiums totaled US$99m or 94% of total premiums. Almost half
(43%) of total insurance premiums derived from motor vehicle insurance. Limited experience to
date with retail and life business. Similar to the banking industry, the majority of insurance business
in Ethiopia is targeted at the corporate market and focused on general insurance business. At less
than 5% of total premiums, the life insurance industry is still very small and a recent addition to
their core business of general insurance for most private insurers. The corporate focus implies that,
to date, insurers have little experience in intermediating products to individuals and cost margins

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have not yet been tested against the more cost-sensitive retail business. (Anja Smith & Doubell
Chamberlain; 2010)

Organizational Structure of Ethiopian Insurance Corporation

Staff Development

In order to continuously upgrade the educational qualification of its employees.EIC exhibited

outstanding commitment in providing its staff with short & long term training programs both
here in with Ethiopia and overseas.

As of June 30, 2018 EIC has 1,504 employees with different educational background. Both the
management and supervisory staff of the corporation are highly skilled professionals with
outstanding academic achievements as well as professional insurance qualifications and many
years of excellent practical experience in the insurance industry. (Ethiopian Insurance
Corporation)

Characteristics of insurance
Risks which can be insured by private companies typically share seven common characteristics:

1. Large number of similar exposure units: Since insurance operates through pooling
resources, the majority of insurance policies cover individual members of large classes,
allowing insurers to benefit from the law of large numbers in which predicted losses are
similar to the actual losses.

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 Exceptions include Lloyd's of London, which is famous for ensuring the life or health of
actors, sports figures, and other famous individuals. However, all exposures will have
particular differences, which may lead to different premium rates.

2. Definite loss: This type of loss takes place at a known time and place, and from a known
cause. The classic example involves the death of an insured person on a life-insurance
policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion.
Other types of losses may only be definite in theory. Occupational disease, for instance, may
involve prolonged exposure to injurious conditions where no specific time, place, or cause is
identifiable. Ideally, the time, place, and cause of a loss should be clear enough that a
reasonable person, with sufficient information, could objectively verify all three elements.

3. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at
least outside the control of the beneficiary of the insurance.

The loss should be pure, in the sense that it results from an event for which there is only the
opportunity for cost. Events that contain speculative elements such as ordinary business
risks or even purchasing a lottery ticket are generally not considered insurable.

4. Large loss: The size of the loss must be meaningful from the perspective of the insured.
Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing
and administering the policy, adjusting losses, and supplying the capital needed to
reasonably assure that the insurer will be able to pay claims. For small losses, these latter
costs may be several times the size of the expected cost of losses. There is hardly any point
in paying such costs unless the protection offered has real value to a buyer.

5. Affordable premium: If the likelihood of an insured event is so high, or the cost of the
event so large, that the resulting premium is large relative to the amount of protection
offered, then it is not likely that insurance will be purchased, even if on offer.
Furthermore, as the accounting profession formally recognizes in financial accounting
standards, the premium cannot be so large that there is not a reasonable chance of a
significant loss to the insurer. If there is no such chance of loss, then the transaction may
have the form of insurance, but not the substance (U.S.

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 Financial Accounting Standards Board pronouncement number 113: "Accounting and
Reporting for Reinsurance of Short-Duration and Long-Duration Contracts").

6. Calculable loss: There are two elements that must be at least estimable, if not formally
calculable: the probability of loss, and the attendant cost. Probability of loss is generally an
empirical exercise, while cost has more to do with the ability of a reasonable person in
possession of a copy of the insurance policy and a proof of loss associated with a claim
presented under that policy to make a reasonably definite and objective evaluation of the
amount of the loss recoverable as a result of the claim.

7. Limited risk of catastrophically large losses: Insurable losses are ideally independent and
non-catastrophic, meaning that the losses do not happen all at once and individual losses are
not severe enough to bankrupt the insurer; insurers may prefer to limit their exposure to a
loss from a single event to some small portion of their capital base. Capital constrains
insurers' ability to sell earthquake insurance as well as wind insurance in hurricane zones.

In the United States, the federal government insures flood risk. In commercial fire
insurance, it is possible to find single properties whose total exposed value is well in excess
of any individual insurer's capital constraint. Such properties are generally shared among
several insurers or are insured by a single insurer which syndicates the risk into
the reinsurance market.

When a company insures an individual entity, there are basic legal requirements and regulations.
Several commonly cited legal principles of insurance include:

Indemnity – the insurance company indemnifies or compensates the insured in the case of certain
losses only up to the insured's interest.

Benefit insurance – as it is stated in the study books of The Chartered Insurance Institute, the
insurance company does not have the right of recovery from the party who caused the injury and is
to compensate the Insured regardless of the fact that Insured had already sued the negligent party
for the damages (for example, personal accident insurance)

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Insurable interest – the insured typically must directly suffer from the loss. Insurable interest must
exist whether property insurance or insurance on a person is involved.

The concept requires that the insured have a "stake" in the loss or damage to the life or property
insured. What that "stake" is will be determined by the kind of insurance involved and the nature of
the property ownership or relationship between the persons. The requirement of an insurable
interest is what distinguishes insurance from gambling.

Utmost good faith – (Uberrima fides) the insured and the insurer are bound by a good faith bond of
honesty and fairness. Material facts must be disclosed.

Contribution – insurers which have similar obligations to the insured contribute in the
indemnification, according to some method.

Subrogation – the insurance company acquires legal rights to pursue recoveries on behalf of the
insured; for example, the insurer may sue those liable for the insured's loss. The Insurers can waive
their subrogation rights by using the special clauses.

Causa proxima, or proximate cause – the cause of loss (the peril) must be covered under the
insuring agreement of the policy, and the dominant cause must not be excluded

Mitigation – In case of any loss or casualty, the asset owner must attempt to keep loss to a
minimum, as if the asset was not insured.

BENEFITS OF INSURANCE TO SOCIETY1

The major social and economic benefits of insurance include the following:

Indemnification: Indemnification permits individuals, and families to be restores to their former

financial position after a loss occurs. As a result, they can maintain their financial security.
Because insured’s are restored either in part or in whole after a loss occurs, they are less likely to
apply for public assistance or welfare benefits, or to seek financial assistance former

Less Worry and Fear: A second benefit of insurance is that worry and fear are reduced. This is
true both before and after a loss. For example, if family heads have adequate amounts of life
insurance, they are less likely to worry about the financial security of their dependents in the event

1
Risk management & insurance teaching material (ch-3) compiled by Shekur Wosen (Debark University).

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of premature death; persons insured for long-term disability to not have to worry about the loss of
earnings if a serious illness or accident occurs; and property owners who are insured enjoy greater
peace of mind because they know they are covered if a loss occurs.

Source of Investment Funds: The insurance industry is an important source of funds for capital
investment and accumulation. Premiums are collected in advance of the loss, and funds not needed
to pay immediate losses and expenses can be loaned to business firms. These funds typically are
invested in less risky investment areas. In addition, because the total supply of loanable funds is
increased by the advance payment of insurance premiums, the cost of capital to business firms that
borrow will be reduced.

Loss Prevention: Insurance companies are actively involved in numerous loss prevention programs
and also employ a wide variety of loss prevention personnel, including safety engineers and
specialists in fire prevention, occupational safety and health, and products liability. For example,
Highway safety and reduction of automobile deaths, Fire prevention, Reduction of work related
disabilities, Prevention of auto thefts etc.

Enhancement of Credit: A final benefit is that insurance enhances a person’s credit. Insurance
makes a borrower a better credit risk because it guarantees the value of the borrower’s collateral or
give greater assurance that the loan will be repaid. For example when a house is purchased, the
lending institution normally requires property insurance on the house before the mortgage loan is
granted.

Types of insurance2
The three basic types of insurance are mainly purchased for property, liability (third person), and
life protection of an individual or a business.

Property Insurance

Property insurance provides protection against risks to property, such

as fire, theft or weather damage. This may include specialized forms of insurance such as fire
insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler
insurance. The term property insurance may, like casualty insurance, be used as a broad category of
various subtypes of insurance.
2
https://en.wikipedia.org/wiki/Insurance#Life_insurance

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Liability Insurance

Liability insurance is a very broad superset that covers legal claims against the insured. Many types
of insurance include an aspect of liability coverage. For example, a homeowner's insurance policy
will normally include liability coverage which protects the insured in the event of a claim brought
by someone who slips and falls on the property; automobile insurance also includes an aspect of
liability insurance that indemnifies against the harm that a crashing car can cause to others' lives,
health, or property. The protection offered by a liability insurance policy is twofold: a legal defense
in the event of a lawsuit commenced against the policyholder and indemnification (payment on
behalf of the insured) with respect to a settlement or court verdict. Liability policies typically cover
only the negligence of the insured, and will not apply to results of willful or intentional acts by the
insured.

Life Insurance

Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary,
and may specifically provide for income to an insured person's family, burial, funeral and other
final expenses. Life insurance policies often allow the option of having the proceeds paid to the
beneficiary either in a lump sum cash payment or an annuity. In most states, a person cannot
purchase a policy on another person without their knowledge.

Regulatory differences
In the United States, insurance is regulated by the states under the McCarran-Ferguson Act, with
"periodic proposals for federal intervention", and a nonprofit coalition of state insurance agencies
called the National Association of Insurance Commissioners works to harmonize the country's
different laws and regulations. The National Conference of Insurance Legislators (NCOIL) also
works to harmonize the different state laws. (J Schacht & B Foudree. (2007). "A Study on State
Authority: Making a Case for Proper Insurance Oversight")

The insurance industry in China was nationalized in 1949 and thereafter offered by only a single
state-owned company, the People's Insurance Company of China, which was eventually suspended
as demand declined in a communist environment. In 1978, market reforms led to an increase in the
market and by 1995 a comprehensive Insurance Law of the People's Republic of China.
("Insurance Law of the People's Republic of China – 1995").

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In Ethiopia the Insurance Supervision Directorate (ISD), at the National Bank of Ethiopia, carries
the mandate and the duty to supervise the operations of insurance companies in Ethiopia.
Investment activities are heavily constrained by the restrictions that the NBE's investment
proclamation imposed. This forces insurance companies to invest the majority of their funds in
government securities and bank deposits at negative real interest rates.

At present one state owned insurance corporation, Ethiopian Insurance Corporation (EIC), and 13
privately owned insurance companies are operating in Ethiopia. Among them, 8 insurance
companies are engaged in both life and general (Composite) business, 5 of them in general
insurance and one insurance company (Ethio-Life) exclusively running life insurance. (Birritu No.
112, November2012).

Opportunities and challenges for insurance in Ethiopia

Opportunities and challenges captured by these themes as written by (Anja Smith & Doubell
Chamberlain; 2010)

 Recently liberalized market in early stages of commercialization. Ethiopia has recently

emerged from a communist era and is still undergoing significant structural changes with
the re-introduction of a market economy. Although the financial sector in Ethiopia has
undergone a process of liberalization and privatization since the early 1990s, government is
the dominant player and foreign ownership of financial institutions is not allowed.
 Large un-served market, but with very low income levels and challenging population
distribution. The Ethiopian environment is characterized by low levels of income and high
levels of economic vulnerability.
 Generally weak financial system with low level of penetration and contact with lower-
income market.
 Young insurance industry at very early stage of development with limited skills, capacity
and incentive to push market extension.
 Limited experience to date with retail and life business. Similar to the banking industry, the
majority of insurance business in Ethiopia is targeted at the corporate market and focused on
general insurance business.
 More people may have informal risk cover than formal insurance but it is also presents
significant opportunity for the development of the insurance sector.

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  Unsupportive environment for intermediation. Ethiopia is characterized by limited
infrastructure and the absence of networked commercial infrastructure (e.g. large retail store
chains).
 Limited health services infrastructure. The health services network, through which health
insurance could potentially be intermediated and which essential for the provision of
services is purchased with this type of insurance is also under-developed.
 Contrary to the banking sector, however, competition is stiff in the insurance industry.
Private insurance companies (or at least some of them), ambitious to increase their sales
volume, have been granting unfair and unjustifiable discounts to attract clients and attain
their sales forecast. This aggressive pricing policy has led to an unhealthy spiral of premium
cutting.
 Finally, insurance companies' investment activities are heavily constrained by the
restrictions that the NBE's investment proclamation imposed. This forces insurance
companies to invest the majority of their funds in government securities and bank deposits
at negative real interest rates. The lack of infrastructure, especially a stock market, further
constrains insurance companies' investment activities.

But existing distribution options not fully utilized. Despite the limited distribution opportunities
available in the form of client aggregators, insurance companies are not yet fully exploiting the
available opportunities. For example, customer information databases of banks are not utilized
to cross-sell their insurance products and insurers mostly only obtain referral business from
banks where a client needs credit insurance. This presents significant opportunities for
expanding insurance coverage that is within easy reach of the market.

Conclusion and Recommendation

Conclusion
As insurance is way to reduce financial uncertainty of individual or business to recover from
loss, Ethiopia is one of the countries in the world now to operate modern insurance just to use
the benefits of insurance industry by stabilizing the economy and safety of the people. But the

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 history of insurance in Ethiopia is beyond the story of modern insurance; our grand generations
were using other means to refrain from financial and moral losses by using techniques like iddir,
iqub and the like.

Ethiopian insurance is different from other countries like USA and china in different aspects i.e.
the insurance industry is currently supervised by the Insurance Supervision Directorate (ISD), at
the National Bank of Ethiopia; this makes the industry autonomy under question. As it is at
earlier period, Ethiopian insurance industry has many opportunities but is linked with some
challenges discussed above.

Recommendation
By considering the above information’s on opportunities and challenges of insurance industry in
Ethiopia; we recommend:

 For the sake of market expansion, the concerned body must provide conferences on
issues related to benefits and market profitability of insurance business and to change
perception of the people towards insurance.
 It’s good to make insurance industry autonomous to decide on its own but up to the
level autonomy the government have to provide experts and provide opportunities for
expertize like scholarship and experience share with the remaining world.
 National bank of Ethiopian has to amend restrictions on investment of majority of their
funds in government securities or to give incentive to insurance companies.
 To avoid unfair competition, the current regulatory body must arrange serious rules
related with marketing and other different issues.

Reference
 ("Insurance Law of the People's Republic of China – 1995").
 (Anja Smith & Doubell Chamberlain; 15 January 2010: Opportunities and challenges for
micro insurance in Ethiopia, Oxfam America: Boston, MA).
 (Birritu No. 112, November2012 (one of financial magazine in Ethiopia)).

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 (Dejene Aredo, 2010, Vol. 34, No. 1 (2010), pp. 53-72; THE IDDIR: AN INFORMAL
INSURANCE ARRANGEMENT IN ETHIOPIA: Published by: Centre for Socio-economic
Dynamics and Cooperation of the University of Bergamo: Stable URL:
https://www.jstor.org/stable/41406511).
 (Gollier, C. & Treich, N. (2003) Decision-Making under Scientific Uncertainty: (The
Economics of the Precautionary Principle. Journal of Risk and Uncertainty 27, 77–103.
https://doi.org/10.1023/A:1025576823096). To Insure or Not to Insure? An Insurance
Puzzle. The Geneva Papers on Risk and Insurance Theory)
 (J Schacht & B Foudree. (2007). "A Study on State Authority: Making a Case for Proper
Insurance Oversight").
 (OECD (2018), The Institutional Structure of Insurance Regulation and Supervision,
www.oecd.org/finance/The-Institutional-Structure-of-Insurance-Regulation-
andSupervision.pdf).
 (Robert Hayman, 1628: Records of the Prerogative Court of Canterbury, Catalogue
Reference PROB 11/163).
 (U.S. Financial Accounting Standards Board pronouncement number 113: "Accounting and
Reporting for Reinsurance of Short-Duration and Long-Duration Contracts").
 (Vladimir Njegomir & Boris Marovic: 2012-Contemporary trends in the global insurance
industry; available online at www.sciencedirect.com)
 (www.google.com/ National Bank of Ethiopia, Annual Report of National Bank of Ethiopia.
Available from: www.nbe.org.et).

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