Insurance penetration in Ethiopia remains low, with premiums accounting for less than one percent of GDP, according to a report by Birrmetrics. Limited awareness, low financial literacy, and constrained digital distribution continue to restrict uptake, despite signs of growth in the sector.

General insurance premiums increased 48.6% to 38.7 billion birr, driven by higher asset values and growing motor policy underwriting amid rising vehicle ownership. Life assurance premiums rose 46.2% to 2.7 billion birr.

Industry players cited stronger economic activity, inflation-driven premium adjustments and tentative reforms widening the range of insurable assets as key drivers of growth.

The National Bank of Ethiopia (NBE) has signalled further measures to strengthen oversight as part of a broader financial-sector reform agenda. Regulators have also indicated plans to establish an independent insurance regulator to support sector expansion.

Despite rapid growth, insurance penetration remains low, with premiums accounting for well below one percent of GDP. Low awareness, limited digital distribution channels and low financial literacy continue to constrain take-up.