Insurance market capability assessment in Ethiopia

• Jul 26, 2025
• 1 min

Ethiopia’s insurance sector faces critical capacity gaps that hinder its ability to grow and deliver inclusive financial protection. Without a coordinated approach to capability development, the sector remains ill-equipped to respond to emerging risks and market demands. Therefore, the sector needed a comprehensive and targeted capacity-building intervention.

MSC conducted a training needs assessment for Ethiopia’s insurance sector to support the establishment of a national center of excellence. The objective was to strengthen the skills and capabilities of insurance value chain players through the identification of the existing knowledge and capacity gaps that limit the sector’s growth and professionalism. These players included regulators, insurers, reinsurers, brokers, and training institutions. 

MSC refined the IFC’s diagnostic tools, conducted primary and secondary research, and engaged 17 key institutions across the country. The assessment revealed major gaps in claims handling, underwriting, product innovation, and customer experience management. Further, MSC’s findings served as a foundation for the development of a tailored curriculum and informed the structure and focus of the upcoming center of excellence. This initiative was expected to enhance Ethiopia’s insurance sector’s long-term sustainability and performance by aligning capacity-building efforts with market needs.

The International Finance Corporation (IFC) and the Capital Financial Excellence Center (CaFEC) commissioned this project.