27/03/2026
Corporate Governance in Ethiopia’s Insurance Sector: The New “Fit and Proper” Directive No. SIB/63/2026
Ethiopia’s insurance sector is taking a major step toward stronger governance. The National Bank of Ethiopia’s Directive No. SIB/63/2026 sets clear standards for individuals who hold significant influence in insurance companies think CEOs, directors, senior executives, and major shareholders.
Key highlights:
Competence & Professional Capacity: Leaders must have the right education and relevant experience to make informed, responsible decisions.
Integrity & Ethics: Individuals with histories of fraud, dishonesty, or regulatory violations are excluded trust matters above all.
Financial Soundness: Transparency and stability are required; financial stress cannot compromise company decision-making.
The directive also encourages diverse, balanced, and accountable boards, including female and independent directors, while empowering the regulator to continuously monitor compliance. Non-compliance carries serious consequences, including removal from positions and regulatory sanctions.
This shift underscores a fundamental truth: strong institutions rely on capable and trustworthy leadership. For professionals, it’s a chance to engage more deeply in corporate governance and regulatory advisory. For the market, it promises greater stability, transparency, and public trust.
Click to read the full article: https://eagleadvocates.com/fit-and-proper-ethiopia-insurance-directive/