The Insurers Federation of Egypt (IFE) has recommended supporting the digitalisation of fire insurance policies to facilitate access to insurance coverage, especially in remote areas.
In its weekly newsletter released on 13 July 2025, the Federation also highlighted the need to cooperate with government and regulatory agencies to promote a culture of preventative safety and implement civil protection standards to mitigate the causes of fires. It also highlighted the need to encourage the distribution of microinsurance products to low-income individuals and small business owners against the risk of fire.
The Federation says that increasing citizens' insurance awareness of the types of coverage offered by fire insurance companies and updating insurance policies to keep pace with emerging risks are essential for expanding the fire insurance customer base, especially in light of the increasing disasters resulting from climate change, the misuse of energy resources, and uncontrolled urban expansion.
High temperatures
The industry body has also reviewed the impact of high temperatures on insurance claims and property insurance, particularly agricultural insurance.
The IFE explains in the newsletter that high temperatures lead to direct and indirect damage to property insurance, potentially increasing the likelihood of power outages due to the overloading of power grids. Also present is the risk of forest fires, resulting from drought and high temperatures, causing direct damage to buildings and facilities.
According to the bulletin, "Extreme heat waves directly damage crops and livestock, causing crops to wilt and be damaged due to drought and high temperatures, reducing land productivity and declining crop quality, threatening food security and prompting farmers to file insurance claims to cover losses. Livestock also die or develop diseases resulting from heat stress or water shortages, leading to increased claims for livestock insurance."
The development and complexity of economic life, the emergence of modern technology in industries, the increase in the volume and diversity of trade, and the development of transportation have all led to an increase in the importance of this type of insurance. The emergence of large industrial and commercial establishments, with high financial values, has also contributed to the escalation of fears of the huge losses that may result from the outbreak of fires. These losses are not limited to asset owners but may extend to affect the overall economy.