Egypt: Market predicted to see 15-20% decrease in premiums in FY21
Source: Middle East Insurance Review | Sep 2020
Premiums in Egypt’s insurance sector are expected to decline by 15-20% in the financial year ending 30 June 2021 (FY21) due to the coronavirus pandemic, according to a senior industry official.
Mr Alaa El-Zoheiry, chairman of Insurance Federation of Egypt, said that COVID-19 has negatively affected some insurance branches. Travel and aviation insurance business have been severely affected as a result of the interruption of air traffic, while motor insurance was hit by the authorities suspending the issuance of new registrations during the lockdown period, according to a report by Amwal Al Ghad.
He noted though some positive effects from the pandemic, including a 50% reduction in supplementary motor compensation as well as a 20% fall in medical insurance compensation.
He added that 79% of medical insurers in Egypt provide complete coverage for COVID-19-related medical treatment while the remaining 21% cover only the cost of coronavirus tests.
In a recent interview with Amwal Al Ghad, Financial Regulatory Authority vice chairman Reda Abdel Moaty said the total premiums estimated for the insurance sector for FY20 were EGP33.7bn ($2.1bn), distributed between EGP18.5bn for P&C business and EGP15.2bn for life insurance.
In comparison, the total market portfolio reached about EGP35.2bn for FY19. The reason for the 4.3% decline in FY20 was due to economic impact from the pandemic. M
EGP1 = $0.06