Insurance experts have identified a number of factors that would contribute to growth in the sector in the current fiscal year 2019-2020 (FY2020).
The foremost factor is completion of the new insurance law to create the legislative environment for the sector, according to local media reports. This new law would provide for microinsurance policies in addition to expanding the range of compulsory insurance covers.
Separately, Mr Alaa El-Zoheiry, chairman of the Insurance Federation of Egypt, said that insurance companies should tap IT to increase business, such as issuing e-insurance policies.
He pointed out that the main obstacle to insurance companies implementing their strategic plans is decreased incomes and high commodity prices, which may reduce the ability of individuals to save, and thus reduce their purchasing power to buy insurance policies. This could be resolved through offering microinsurance.
Mr Ramah Asaad, managing director of Egyptian Life Takaful-GIG, said that the Financial Regulatory Authority's plan to publish the first local actuarial tables for life insurance will contribute to the growth of the market by helping insurers to determine fair pricing. Insurers currently use UK and US actuarial tables, despite differences from the Egyptian market in terms of birth and death rates.