Egypt: Insurers urged to match pricing to risks
Source: Middle East Insurance Review | Nov 2022
The insurance sector needs to consider hiking the pricing of its products in response to the increase in the degree and size of risks that it covers, according to the Financial Regulatory Authority (FRA) chairman Mohamed Farid.
Speaking during the opening session of the three-day Sharm El-Sheikh Insurance and Reinsurance Forum, Dr Farid said that the insurance market had been hit by higher claims arising from situations such as the COVID-19 pandemic, rising inflation, supply chain disruptions and the Russia president Vladimir Putin’s invasion of Ukraine.
Dr Farid also pointed out the importance of technological development as well as the distribution of insurance products.
On the sidelines of the conference, he told the media that the FRA is looking to develop digital marketing channels for insurance companies. He said that such channels would help the financial sector reach the largest segment of customers at the lowest cost.
Dr Farid also said that the FRA is studying the investment dimension of insurance companies, pointing out that amendments have been made to the executive regulations of the capital market law to encourage companies to issue green bonds.
In addition, the FRA is looking into establishing a unified online database for the insurance sector that would help in developing the sector and providing accurate data. He said that data contributes to more accurate insurance pricing, as is the case with the publication of the first Egyptian actuarial life tables earlier this year. M