Egypt: Health premiums crossed EGP1-bln mark in 2016
Source: Middle East Insurance Review | May 2017
Medical insurance premiums in Egypt rose by 12.7% to EGP1.1 billion (US$60.6 million) last year, compared to EGP976 million the previous year, according to Mr Sherif Samy, Chairman of the Egyptian Financial Supervisory Authority.
Mr Samy said that health premiums represented nearly 15% of total non-life market share. He was speaking at a seminar which had the theme “Medical Insurance Opportunities and Challenges” and was organised by the American Chamber of Commerce in Cairo.
He also said that total compensation paid in the medical class of business stood at about EGP1.1 billion in 2016 compared to EGP890 million the previous year, reported Al Mal News.
Mr Samy indicated that the figures attested to the increasing importance of health insurance as insurers expand coverage and the awareness of customers increases.
He also highlighted the challenges faced by insurers in light of the high costs of medical services and medicine, especially after the liberalisation of the exchange rate last year. The rate of inflation in the healthcare sector surged to 33% last year, according to the Central Agency for Public Mobilisation and Statistics.
In 2016, total premiums in Egypt, including takaful contributions, amounted to nearly EGP24 billion, compared to about EGP18 billion the previous year. Growth was driven mainly by life insurance where premiums surged 40% to EGP16.5 billion.
Mr Samy revealed that a draft Bill to revise the law for the supervision and control of the insurance sector is almost complete. The proposed amendments would cover the organisation of specialised medical insurers and the possibility of obtaining a separate licence in this segment.
Meanwhile, the Egyptian government is also working on introducing a social health insurance system. M
EGP1 = US$0.06