An Egyptian broker is in the process of establishing insurance brokering operations in Ethiopia that are scheduled to start within this year.
The new insurance brokerage venture will be established with an Ethiopian partner, Mubasher reported citing Mr Talaat Abou Kalam, chairman and managing director- of GIG Insurance Brokerage. This is because foreign insurers are not allowed to conduct business in Ethiopia.
The expansion to Ethiopia is a first for the Egyptian insurance market since the establishment of brokerage firms in Egypt in 2008.
Mr Abou Kalam said that overseas expansion by Egyptian insurance brokers in neighbouring states follows in the wake of increased Egyptian investments in those countries.
He pointed out that the Ethiopian market is witnessing an economic boom. Egyptian industries engaged in sectors such as pharmaceuticals, paints, chemicals, tourism, agriculture and others have operations in Addis Ababa, which opens the way for providing insurance services to them by professional intermediaries.
He added that medical insurance presents promising opportunity in Ethiopia, especially as Ethiopia, like Egypt, is populous.
Source: Asia Insurance Review