Premiums in Egypt's insurance sector are expected to decline by 15-20% in the financial year ending 30 June 2021 (FY21) due to the coronavirus pandemic, according to a senior industry official.
Mr Alaa El Zoheiry, chairman of Insurance Federation of Egypt, said that COVID-19 has negatively affected some insurance branches. Travel and aviation insurance business have been severely affected as a result of the interruption of air traffic, while motor insurance was hit by the authorities suspending the issuance of new registrations during the lockdown period, according to a report by Amwal Al Ghad.
He noted though some positive effects from the pandemic, including a 50% reduction in supplementary motor compensation as well as a 20% fall in medical insurance compensation.
He added that 79% of medical insurers in Egypt provide complete coverage for COVID-19-related medical treatment while the remaining 21% cover only the cost of coronavirus tests.
In an interview with Amwal Al Ghad published last month, Mr Reda Abdel Moaty, FRA vice chairman, said that total premiums estimated for the insurance sector for FY20 were EGP33.7bn ($2.1bn), distributed between EGP18.5bn for P&C business and EGP15.2bn for life insurance.
In comparison, the total market portfolio reached about EGP35.2bn for FY19. The reason for the 4.3% decline in FY20 was due to economic impact from the pandemic.