The Insurance Federation of Egypt (IFE) has revealed that the 1 January renewal of reinsurance agreements will see an increase in prices in most insurance branches because of global conditions.
However, the Egyptian market is better placed than other markets to negotiate with reinsurers, according to local media reports quoting the IFE. The factors for this are:
The Egyptian market has succeeded in obtaining a decent level of premiums, especially in branches such as engineering due to the projects that Egypt is currently implementing,
The economic situation in Egypt is stable with the inflation rate declining to some extent. It is also expected that the economy in Egypt will grow at between 2% and 2.5%.
There is also stability in the currency,
Egypt has not been hit by natural disasters to the extent seen in other countries.
The IFE advises local insurers to be well prepared for the renewal of reinsurance agreements by paying attention to comprehensive preparation and analysis of data required by reinsurers.
Insurance companies must also ensure the appropriate pricing of products so that pricing would not be below the level of risk.