Regulation Of Insurance Brokerage In Ethiopia The Law And The Practice By

One of the major actors in the insurance business transaction are insurance intermediaries.rnThere are different types of insurance intermediaries among which insurance brokers are thernmain ones. The business of insurance and the insurance policies are complex to the public inrngeneral. As a result, the assistance of these middle men in the insurance industry is very crucialrnfor the efficiency of the insurance sector in general.rnInsurance brokers are persons that assist and work in handling of insurance contracts andrninsurance transactions mainly on behalf of the public at large. That is to say insurance brokersrnmainly act on behalf and as agents of prospective insured persons. Though insurance brokers actrnon behalf of the insured they may also render important services at times even may act on behalfrnand as agents of insurance companies. This especial characteristics of the insurance brokingrnsector gives insurance brokerage and its regulation to have its own distinct features.rnThe business of insurance in general requires careful and adequate regulation. In tandem withrnthis and as insurance brokers are major players in insurance sector one of the major areas ofrnregulation in this regard is the regulation of insurance brokerage. The regulation of commercialrnbrokers in general is governed under Book I Title II of the Commercial Code of Ethiopia. Inrnaddition to this the insurance business proclamation of Ethiopia holds few provisions specificallyrnon the regulation of insurance brokers. In addition to these, there are specific directives whichrnare issued by the National Bank of Ethiopia and are applicable on insurance brokers.rnThe main purpose of this work is to assess the adequacy of the laws regarding the regulation ofrninsurance brokerage in Ethiopia. Especially emphasis to the regulation of payment of insurancernbrokers’ remuneration in Ethiopia will be done in the research. To that end, internationalrnliteratures and practice as well as the pertinent legislations on insurance brokers in Ethiopiarnwill be analysed thoroughly. Moreover, in order to see the practice of insurance brokerage inrnlight of the applicable laws, the prevailing practice in the sector will be assessed. In addition tornanalysing of the legislations, this research paper will also use interviewees and analysing ofrncourt decisions rendered in relation to insurance brokerage.

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