Wethaq Takaful Insurance Company is aiming to increase its direct premiums to EGP130 million (US$16.6 million) for the current fiscal year ending 30 June 2016, a 13% increase compared to EGP115 million in FY2014-15, through targeted expansion in marine, fire, engineering and miscellaneous insurance, said CEO Abdel Latief Sallam.
He said that the company has completed the development of a new strategy that includes expanding the marketing of such products as travel insurance and medical insurance, as well as launching new products that meet the growing needs of customers, reported Al Mal News.
The insurer has designed a professional liability product for engineers, which will be submitted to the Egyptian Financial Supervisory Authority (EFSA) for approval. Mr Sallam noted that there is increasing demand for professional liability coverage, including for doctors and lawyers.
He added that the company’s auto insurance business is likely to grow in the current fiscal year because of the expansion of retail banking loans and increased funds for the purchase of cars in the country. But he stressed at the same time that the company was working to balance its insurance portfolio, to stem losses in the compulsory auto branch. In FY2014-15, Wethaq Egypt saw compulsory motor premiums decline to EGP52.25 million, compared with EGP54.8 million in the previous fiscal year.
However, the company increased its supplementary auto insurance business, with premiums amounting to EGP38 million in FY2014-15 compared to EGP29 million in FY2013-14. He said that the 31% growth in this class of business was a result of the development of target risk selection criteria and the use of pricing tools conforming with technical standards and sound underwriting.
There is also growing demand for such coverage which is bundled in the company’s insurance packages, which include fire, personal accident and other covers.
Wethaq Egypt is also planning to open a new branch in Port Said Governorate in the next few months, to take advantage of investment projects to be established around the Suez Canal. Mr Sallam said that investments around the new Suez Canal channel will increase demand for various types of insurance, including engineering, fire, maritime and personal accident insurance.
He said that the company will hold a meeting soon on its new ownership structure, following the sale by Kuwait-based Wethaq Takaful Insurance of its 60% stake in the Egyptian insurer, which was announced in August.