Regulatory Alerts2023-04-27
Added · Updated
National Bank of Ethiopia Risk Management Guideline for Insurance Companies
The National Bank of Ethiopia issues a draft risk management guideline applying to all insurance companies in Ethiopia, requiring them to develop formal policies and programs addressing eight inherent and significant risks: credit, market, liquidity, underwriting, technical reserves, operational and technological, contagion and related party, and reinsurance risks. The document mandates that boards of directors remain ultimately responsible for risk management practices while management develops and implements the necessary programs, with effectiveness serving as a key determinant in the regulator's risk-based assessment. Insurers are expected to submit their resulting Risk Management Programs to the National Bank of Ethiopia for approval.