The biggest challenge in Egypt's life insurance market is the low penetration rate, which stands at less than 1%, participants at a workshop on life insurance and reinsurance have learnt.
The workshop was organised by the Insurers Federation of Egypt (IFE) and the Cairo regional office of the African Reinsurance Corporation. The event was attended by 35 participants, including underwriters and claims managers from various insurance companies operating in the Egyptian market, reported Amwal Alghad. The workshop aims to enhance technical knowledge in underwriting, risk analysis, and claims management, with a focus on best practices and local challenges.
Other difficulties faced by life insurers in Egypt include low insurance awareness and financial literacy, the lack of actuarial and financial tables used in product pricing, and inadequate digitalisation in marketing and underwriting processes.
The workshop discussed a variety of topics, including the basic principles of life insurance underwriting, fair risk pricing mechanisms based on actuarial tables, and claims management based on integrity and efficiency standards. It also presented practical cases for assessing permanent total disability, premature death, and critical illness, as well as the use of artificial intelligence tools to expedite claims processing and reduce fraud.
The workshop ended with the organisers making several recommendations, proposing that life insurers have to:
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strictly verify the accuracy of data contained in insurance applications,
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improve coordination between the underwriting and claims teams,
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develop medical examination tools and expert reports, and
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utilise warning indicators in underwriting.