Regulatory Alerts2023-12-14
Added · Updated
Licensing, License Renewal and Product Approval for Microinsurance Providers Directive No. SMIB/3/2020
The National Bank of Ethiopia establishes licensing, renewal, and product approval requirements for microinsurance providers, including insurance companies, microinsurance companies, and microfinance institutions. Insurance companies must achieve a composite risk assessment rating of at least 3 and establish a separate unit to deal in microinsurance products. Microinsurance companies are required to maintain paid-up capital of Birr 7 million for general products, Birr 3 million for life products, or Birr 10 million for both, and meet specific fit and proper criteria for directors and executives. Microfinance institutions may offer credit life insurance without additional authorization but must establish a separate business unit, achieve a CAMEL rating of at least 3, and hold additional capital of Birr 3 million, Birr 7 million, or Birr 10 million depending on the product scope.