Renewing reinsurance contracts for 2022 is not an easy matter, given the large compensation costs incurred by reinsurers over the past two years due to the COVID-19 pandemic and significant scale of natural disasters, said a senior executive.
In an interview with the newspaper Al Mal, Societe Centrale de Reassurance head of the Cairo regional office Gomaa Zaki also said insurers face rising prices and tight terms and conditions in renewing reinsurance contracts for 2022. But the situation varies from one market to another depending on the results and growth rates in each market, he added.
As for the Egyptian market, he said that its profitability, business volume as well as growth rates can be described as satisfactory, which will allow flexibility in negotiating reinsurance renewals, taking into account the current conditions in global markets.
To avoid tighter reinsurance conditions, insurers have to work to maintain technical profitability and achieve actual growth, he said.
Mr Zaki also stated that the major negative aspects of the COVID-19 pandemic for reinsurers have been higher loss rates in some lines of business, such as medical, due to the high rates of infections and death. Another implication was the failure to achieve the targeted premium volumes in some other lines of business, such as marine and aviation, due to the suspension of global trade movements. M