Inclusive insurance and risk financing in Ethiopia. Snapshot and way forward 2024
Inclusive insurance and risk financing in Ethiopia. Snapshot and way forward 2024
Inclusive insurance and risk financing in Ethiopia. Snapshot and way forward 2024
March 03, 2024
This report presents the main findings of UNDP’s inclusive insurance and risk finance country diagnostic for Ethiopia. It sets out key risks, the current inclusive insurance and disaster risk finance landscape, and recommendations to advance inclusive insurance, risk finance and development.
Ethiopia’s top risks include floods and drought. Microinsurance has been offered for almost 20 years and new regulations were introduced in 2020, but the market is still nascent. A Disaster Risk Financing Strategy has been launched but not operationalized. Disaster response is largely funded by humanitarian aid.
Recommendations include assisting the insurance sector to expand product offerings; developing an action plan for microinsurance; and implementing the DRF strategy.