The Egyptian insurance market posted premiums of EGP31.8bn ($2bn) during the first 11 months of 2019, compared to EGP26.1bn in the corresponding period of 2018, representing a growth rate of 21.8%.
Mr Reda Abdel Moaty, vice chairman of the Financial Regulatory Authority (FRA), told Al Mal that there are several main factors that have contributed to the growth.
The first factor is the positive results of establishing a compulsory motor insurance pool in February 2019, which contributed to improving motor insurance practices, especially cracking down on forgery of insurance policies.
The second reason has to do with the increase in the volume of digital insurance operations, which are permitted in some classes of business, namely, travel insurance, personal accident insurance, microinsurance, as well as life insurance with cover of up to EGP100,000 which does not require the insurance buyer to undergo a medical examination.
Apart from the issuance of digital policies, the scope of distribution of insurance has been expanded because of insurers digitalising their processes. Because of the issuance of digital policies, the regulator has allowed several types of non-insurance entities to distribute insurance. The entities include tour companies, travel agencies and microfinance societies.
At the same time, bancassurance operations have expanded as a result of the increased number of contracts reached between insurance companies and banks.
In addition, last year, the government decided to establish government insurance funds for students in schools, including Azhar students (ie, those in Islamic educational institutes). This increased insurance coverage by 24m citizens.
Finally, there has been an increase in confidence in insurance as a result of the establishment of the Policyholders' Protection Fund.