Individual term life assurance group term life

Individual Term Life
Assurance
 Group Term Life Assurance
 Modified Large Group Term
Life Assurance
 Individual Mortgage
Protection Assurance
 Group Mortgage Protection
Assurance
 Joint Mortgage Protection
Assurance etc.
3 Reinsurance
With a selection of the leading international reinsurance companies
representing first class security in the world reinsurance market.
Source: EIC website (2016 )

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Table 2.5 shows the types and coverages of insurance in the country and the details can be traced
from each company’s website.
Moreover, the potential Ethiopian Insurance Corporation (EIC) is working with:
Federation of Afro Asian Insurers and Re-insurers (FAIR);
African Insurance Organization (AIO); and
Organization of Eastern and Southern African Insurers (OESAI).
2.5 E-commerce in insurance industry
According to a research by KPMG International (2014), insurance companies and intermediaries
are facing five inter-related issues:
 What it means to be digital and how to operate in a digital world.
 How to make the best use the increased data that the digital world generates.
 How to conquer and tame the challenges of the complex web of legacy systems many
have inherited.
 How to achieve all of this in a manner that keeps the business secure in the face of
increased threats to cybersecurity and, lastly but most importantly,
 How to attract and retain the people needed to drive the change this implies-in a nutshell-
how to get started.
Keeping the issues mentioned above in mind, insurance companies have also regarded the
internet mainly as another channel of distribution for their products. Compared to online stock
brokerage and online banking, development of the internet in the insurance industry has been
somewhat cautious. Websites mainly serve to provide information about the company and its
products .Many insurers especially in developing economies have not seized the opportunities
created by e-commerce for making all business processes more efficient; beginning with the
online sale of policies .But the growing number of those who have embraced the technology is
most encouraging (Vress, 2002) and (Yao, 2004). The next section will briefly describe the
affecting factors on electronic means of insurance marketing.

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2.5.1 Major affecting factors of E-commerce on Insurance
Since insurance business is largely based on information, e-commerce application can impact
greatly on the insurance industry. The internet increases transparency on the insurance market,
giving customers more market power. It allows virtualization of organizational networks,
increasing the opportunity for systematic co-operative service offers. It also reduces the amount
of capital needed to enter the insurance market, so that new firms find lower barriers to compete
in the market.