Corporate Governance Practice of Insurance Companies in Ethiopia An Assessment from the Regulator’s Viewpoint
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Date
2022-06
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Addis Ababa University
Abstract
Corporate governance has an important role in the performance of companies and the economy at large given the different stakeholders it involves. The main goal of this study was to assess the role National Bank of Ethiopia plays in the practice of corporate governance in the Ethiopian Insurance Industry. The research design used was descriptive and both qualitative and quantitative approach was utilized to analyze and interpret the results. Primary data which was collected using questionnaires and interview were mainly used in this study. The target population for the study was technical employees of the National Bank of Ethiopia that work in the Insurance Supervision Directorate. For this study 15 respondents were identified and completed response was gathered from 11 of them. To analyze the quantitative data, descriptive analysis was employed using Statistical Package for Social Sciences (SPSS) version 28 while the qualitative data was analyzed and interpreted thematically. The findings show that National Bank of Ethiopia being the principal regulator and supervising body of insurance companies, has a strong role in the practice of corporate governance. It was also observed that the practice of corporate governance is affected more by internal factors within the insurance companies instead of external factors. The study recommends that NBE introduces a dedicated function that is solely responsible in overseeing corporate governance affairs of companies and the skills and capacities of stakeholders (particularly the insurance companies) should be developed to enhance the practice of good corporate governance
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Keywords
Corporate Governance, Insurance, Regulator