Africa News - Egypt: Fire loss ratio amounts to 187% - IFE

Source: Middle East Insurance Review | Jan 2016

A heavy loss ratio of 187% in the fire branch would force international reinsurers to withdraw from the Egyptian market, said the General Committee on Reinsurance of the Insurance Federation of Egypt (IFE) in a seminar, reported the Youm7 news website.

Mr Abd El-Raouf Kotb, IFE President, said that the relationship of the Egyptian companies with foreign reinsurers was negatively affected by the technical results of the fire branch.

The seminar also heard that the technical loss ratio in the fire branch could hit 250% by the end of last year. Reinsurance companies could demand that some controls and requirements be imposed on Egyptian companies such as those engaged in businesses involving paper, textiles, petrochemicals and natural hazards.

Fire incidents are common in Egypt, given the condition of buildings and failure to adhere to safety standards.

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