News Middle East11 Mar 2021

Egypt:Insurance market expected to expand by 12% this year

| 11 Mar 2021

The insurance sector is expected to grow by about 12% this year, according to Mr Alaa El-Zoheiry, president of the Insurance Federation of Egypt (IFE).

In comparison, the market grew by 11.4% to EGP39bn ($2.5m) in premiums in 2020.

Mr El-Zoheiry, in an interview with Amwal AlGhad, said that several factors will support the insurance business this year, including expected increases in insurance premium rates especially by reinsurers, in addition to new products that insurers intend to launch such as microinsurance plans.

He added that insurance companies' adoption of modern marketing means, including electronic distribution and bancassurance, in addition to the insurers' bid to ensure sound technical underwriting, will lead to healthy growth in the insurance sector.

He explained that the digitalisation process that the majority of insurance companies have embarked upon during the COVID-19 pandemic period presents the most prominent opportunity for the growth of premiums.

Furthermore, the proposed new insurance law to be passed by lawmakers provides for several compulsory classes of insurance, and this represents a tremendous opportunity for the insurance sector.

Commenting on the IFE's work, Mr El-Zoheiry said that the federation has sought to launch new technical committees so as to support IFE’s strategy, such as a microinsurance committee.

The IFE will also issue a technical underwriting guide for engineering insurance for which business has grown given the large number of construction and infrastructure projects in Egypt recently. The federation has issued a technical guide for underwriting fire insurance, for which the approval of the Financial Regulatory Authority has been obtained.


 

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