News Middle East17 Sep 2020

Egypt:Mandatory motor pool chalks up premiums of US$70m in its first 13 months

| 17 Sep 2020

The Egyptian compulsory motor third party liability insurance pool has generated premiums amounting to EGP1.1bn ($70m) for the period 8 August 2019 until 8 September 2020 whereas the number of such policies issued during the period was about 4.5m.

The pool was established last year by the Insurance Federation of Egypt. It started receiving premiums on 8 August. 2019,

Mr Ibrahim Labib, executive director of the pool, said that the statistics of the Central Agency for Public Mobilisation and Statistics showed that there were 11m cars in Egypt as of the end of 2019, and thus the percentage of cars insured so far by the pool exceeded more than a third of the number of cars in Egypt.

He added that the average amount of the compulsory insurance policy premium increased by 25% after the establishment of the pool, due to the accuracy of calculating the premium after the standardisation of its calculation basis for premiums. The premiums are calculated automatically through an IT system linked to the vehicles database of the Ministry of Interior. The electronic system has also helped prevent forgery of insurance policies and fraud related to compulsory motor insurance.


 


 

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