Egypt: Motor insurers eyeing 10% increase in premium income
Source: Middle East Insurance Review | Sep 2022
The Egyptian Compulsory Vehicle Insurance Pool is working to help motor insurers meet the target of EGP1.3bn ($67.9m) in premium income in the current financial year ending 20 June 2023 (FY2023). This represents a targeted growth rate of 10%.
In FY2022, motor premiums amounted to EGP1.18bn, according to the pool’s executive director Ibrahim Labib.
Giving a breakdown of the total premiums generated, Mr Labib said that compulsory motor third-party liability premiums reached EGP1.17bn in FY2022, with another EGP14m in premiums received for the issuance of the Orange Card.
The Orange Card system is a pan-Arab scheme that provides a unified insurance card for vehicles that cross borders and move from one Arab country to another.
Expectations are that motor premium income in Egypt will increase when a long-awaited new insurance law enters into effect. The new law provides for a hike in the amount of compensation of up to EGP100,000 for compulsory motor insurance, rising from the current EGP40,000. The higher compensation is expected to be followed by a review of compulsory motor third-party liability insurance premium rates. M