Egypt: IFE panel suggests ways to decide compulsory motor insurance pool contributions
Source: Middle East Insurance Review | Mar 2019
A panel formed by the Executive Council for Property Insurance of the Insurance Federation of Egypt (IFE) has put forward seven proposals for determining the shares of companies in a compulsory motor insurance pool.
According to Al Mal News, it is proposed that the contribution of insurers to the pool be done based on one of the following ways:
- The share of each company in compulsory motor insurance premiums in the market;
- The total share of each motor insurer in both compulsory and complementary insurance;
- The share of each company in property insurance premiums in general, less compulsory premiums;
- The share in the general insurance; or
- The size of the capital and financial reserves of each company.
The sixth proposal is to grant state-owned Misr Insurance a large share in the pool, and then to grant the other companies in the pool equal shares in order to reach a consensus solution, with Misr Insurance holding the largest share in the compulsory motor insurance branch at 34.1%.
The seventh proposal is to grant a large share of the pool to Misr Insurance and then distribute the remaining among the other motor insurers according to their shares in property insurance and liabilities.
The panel would submit its recommendations and proposals to the Executive Council for Property Insurance at its next meeting to resolve the issue, according to the reports. M