Egypt: EFSA issues eight bancassurance licences
Source: Middle East Insurance Review | Jun 2015
The Egyptian Financial Supervisory Authority (EFSA) has issued bancassurance licences to eight insurance companies collaborating with 17 banks, said its Chairman, Mr Sherif Samy.
Speaking at a recent workshop, Mr Samy said the channel raked in premiums of EGP2.5 billion (US$327.70 million) last year, reported Al Mal News. The Egyptian insurance market generated gross written premiums of EGP12 billion for the financial year ended 30 June 2013.
Mr Samy said he expects Egyptian Post to play an active role working with insurance companies to offer insurance through postal offices across the country. EFSA issued regulations a year ago governing such sales to cater to those who do not deal with banks.
Industry observers said that bancassurance has made little impact on industry growth rates even though it has been nearly two years since the Central Bank of Egypt decided to revive bancassurance with EFSA, after suspending such distribution activity in 2008.
The lack of impact has been attributed to the need for due diligence and negotiations between insurers and banks, a process which can be lengthy. Some banks are also unfamiliar with bancassurance, while those with previous experience of the channel have resumed their collaboration with their former insurance partners, leaving other insurers out in the cold.
EGP1 = US$0.13