News Middle East19 Feb 2020

Egypt:Fund to be set up to insure state assets

19 Feb 2020

A fund will be established to manage insurance cover on government assets, Mr Reda Abdel Moaty, vice chairman of the Financial Regulatory Authority (FRA) has said.

In an interview with the newspaper Al Mal, he said that preparations for coverage include setting insurance specifications, classifying government assets, and allocating each group of assets to a group of insurance companies to cover.

He said as state assets are huge in volume, insurance will for the moment be restricted to government installations. He said that while assets can be insured with insurance companies, a certain proportion can be covered by self insurance.

He said that a committee to look into insurance for state assets had been formed previously that was headed by the Minister of Finance Dr Muhammad Moait when he was deputy minister. Members of the committee,set up in 2018, included a number of consultants and a representative of the FRA. Some studies were conducted into how to insure public assets, that is, whether insurance coverage is to be left to each government agency or to insure the assets in a pool.

Mr Moaty said that currently, there are some challenges facing the task of insuring government assets. These include the lack of a budget in some government entities for insurance. In addition, there is a need to study the insurance to be bought for government installations, including content, and types of coverage that will be provided.

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