Egyptian insurance companies have started to accelerate the establishment of risk management committees as they seek a credit rating, according to a report in Al Mal News.
Risk committees are one of the requirements of international rating agencies in rating an insurer.
Corporate risk management plays a key role in stabilising the financial position of insurance companies. All the international credit rating agencies have agreed in their methodologies that the efficiency and effectiveness of the risk management system in insurance companies is one of the four main factors on which to determine their credit rating, and thus it has become a must for Egyptian insurance companies that wish to obtain a credit rating to have effective risk management.
Meanwhile, the Financial Regulatory Authority has stressed the application of risk-based control and risk management among Egyptian insurance companies.