Misr Life Insurance, Egypt's largest life insurer, is working to complete by next month its comprehensive IT development plan that will result in automated insurance operations to enable online services. In addition, the company plans to establish branches nationwide by 30 June 2021.
Dr Ahmed Abdel Aziz, chairman and managing director of the company, says that the target is to achieve EGP8bn ($510m) in premiums over the next three years, depending on the development of the marketing network, bancassurance tie-ups, new products, as well as digital transformation and use of the mobile phone apps.
In an interview with Al Mal, he said that Misr Life posted EGP2.4bn in premiums for the half year ended 31 December 2019, compared to EGP2.1bn during the corresponding six months of the previous year. For the full financial year ending 30 June 2020, the insurer is targeting a premium income of EGP5.2bn.
The company has increased its paidup capital to EGP2bn ($127m) from EGP1.5bn through the conversion of reserves. The increase is to support the company's expansion during the next three years, and to maintain financial solvency.
Mr Abdel Aziz said that the company's board of directors reviews solvency and operational models, especially every quarter, to ascertain the need for capital increases and the extent thereof that would be needed to achieve targeted growth rates.
He added that Misr Life would next consider further increasing its capital after three years, but the amount of the increase has not been determined yet.
The restructuring of the company involves the establishment of new-model branches that will have three basic departments, namely customer service, operations management, and sales management. Five to six such new-model branches will be opened during the next fiscal year ending 30 June 2021. At the same time, the insurer targets to have its traditional branch network established nationwide in the next fiscal year. At present, Misr Life has completed 80% of the plan to set up traditional branches across the country.
IT system digitalises insurance processes
The company's new IT system will assists the underwriter in making decisions after examining insurance applications submitted online by clients. The system aims to facilitate online sales of products with a view to speeding up procedures for policy issuance, premium collection and settlement of claims, by automating all operations in branches nationwide.
An electronic link has been established between Misr Life and the branches of the banks which are bancassurance partners to speed up the process of issuing insurance policies and providing the best services to customers.