Ethiopia: Awash Unveils Insurance Policy to Cover Terrorism Loss

Dec 13, 2017 | Addis Fortune; All Africa

Losses and liabilities incur as a result of unrest and terrorist activities will be insured under the new policy.

Awash Insurance S.C. is set to launch a new policy, Terrorism Insurance, which will protect property owners against losses and liabilities they may incur as a result of unrest and terrorist activities. The past two years have seen a spike in unrests, especially in the Amhara and Oromia regional states, where much property was damaged. Recently, in the West Arsi Zone, in the latter region, about 70ha of a corn farm belonging to the Elfora Agro Industries Plc, a subsidiary of the MIDROC Group, was incinerated. Similarly, in the Amhara Regional State, in the Menjar Zone, a chip wood plant was set ablaze just last month, just to name a few. Despite this, there are few insurers, such as Nyala Insurance S.C, which introduced terrorism coverage almost a year ago, in the country that protects against such loses until Awash rolled down its new policy. "It will insure against those losses," said Tsegaye Kemsi, the chief executive officer (CEO) of Awash. The insurance firm planned to launch the policy after examining the possibilities and customising it for the context that the company operates in, according to Frehiwot Alemayehu, director of Underwriting & Branch Operation Directorate at Awash. "The introduction of the policy was necessitated due to multiple requests from our clients," she has disclosed. When launched, details of the policy, like what it will cover, or exclude, will be discussed and explained with the insured before entering into the contract. Not everyone will be able to receive the policy as risk levels would be assessed and reinsurer's consent and share of risk will also be taken into consideration. "The policy was sent to the National Bank of Ethiopia (NBE) for approval; it was a very rigorous experience," Frehiwot has disclosed. The other insurance company that provides the policy is Nyala. Ethiopian Insurance Company (EIC) and United will likewise begin a terrorism policy this fiscal year. Awash is the third most profitable insurer in the insurance industry, next to Nyala and Nile Insurance. Read more on All Africa. Source: All Africa