The Insurance Federation of Egypt (IFE) has launched a risk management department, to support insurance companies to face societal, economic and technical challenges, and to back them when they renew reinsurance agreements, as well as when they seek a high credit rating from international rating agencies.
Risk management has become an imperative for insurance companies in ensuring financial solvency and in technical planning. It also helps them in determining the percentage of retention of business when they renew reinsurance agreements, industry experts told Al Mal.
Mr Alaa El-Zoheiry, IFE chairman, said that the federation pays special attention to supporting insurance companies operating in the Egyptian market in institutional risk management, by transferring the necessary technical expertise to the Egyptian market, in addition to supporting and assisting risk department officials in Egyptian insurance companies to obtain specialised certificates.
Furthermore, he pointed out that the Financial Regulatory Authority has repeatedly emphasised its intentions to implement the concepts of risk management in Egyptian insurance companies and to adopt a risk based capital adequacy system in order to achieve more stability for the Egyptian insurance market.