Ethiopia has recently experienced a heightened seismic activity, with an earthquake originating from the Awash region making its way to Addis Ababa, leaving many buildings and structures in a vulnerable state. The tremor raised alarm bells about the lack of adequate insurance coverage for buildings, particularly in Ethiopia’s rapidly developing urban centers like Addis Ababa. While high-rise buildings in the city center might be targeted by insurance products, a significant number of properties across the country remain uninsured, leaving them exposed to natural disasters such as earthquakes, fires, and other potential hazards.
During a press conference marking the 30th anniversary of Hibret Insurance, CEO Meseret Bezabih expressed concern over this coverage gap. “Although there are various products targeting the giant buildings in the heart of the city, most buildings in Ethiopia, specifically in Addis Ababa, lack insurance coverage, even in the wake of recent earthquakes from Awash that were also felt in the city,” she said.
Adding to the urgency of the matter, Deputy CEO Tesfaye Desta shed light on the city’s insurance concerns. “In the past, conflicts in the city led to the demolition of many buildings, with the government stepping in to cover the costs for investors. However, the government has now made it clear that it will not bear the responsibility next time,” Tesfaye stated. This shift in responsibility means that property owners are left to shoulder the financial burden in the event of a disaster.
In response to these challenges, Hibret Insurance has introduced a series of products designed to address the gap in coverage, focusing specifically on earthquake, fire, and other potential risks that Ethiopian buildings face. However, despite these innovative products, the Deputy CEO expressed frustration over their low uptake. “Earthquake insurance is one segment of a broader offering that includes fire insurance and other critical coverage. Despite the growing risks, many of these products are not being sold as expected,” Tesfaye said.
Hibret Insurance Company SC is set to celebrate 30 years of success in Ethiopia’s insurance industry on November 14, 2024. Since its founding in 1994, the company has grown from a single office in Addis Ababa into a national leader, offering innovative products and maintaining a commitment to customer satisfaction, gender equality, and financial stability. Known for pioneering initiatives such as Life Insurance in 1997 and the family funeral insurance scheme in 2014, Hibret has continuously adapted to the evolving needs of the Ethiopian market. The appointment of the first female CEO in 2011 and the recent launch of Takaful Insurance reflect its focus on inclusivity and innovation. With impressive financial results and a strong focus on digital transformation and corporate social responsibility, Hibret Insurance is poised for continued leadership in Ethiopia’s insurance sector as it marks this significant milestone.
