Egypt: Insurance market saw premiums up by 24% in FY2018
Source: Middle East Insurance Review | Jan 2019
The 37 insurers operating in Egypt increased their combined direct premiums to EGP27.8bn ($1.6bn) in the fiscal year ended 30 June 2018 (FY2018), representing a growth of 23.6% over the previous financial year.
Property insurers, a total of 23, took the lion’s share of 56.2% of total direct premiums in FY2018. Their premiums amounted to EGP15.6bn, up by EGP3.3bn or 26.8% from FY2017, reported Al Mal News.
Life companies raised their premiums by 19.6% to EGP12.2bn, accounting for 43.8% of total market share.
In comparison, total direct premiums in Egypt soared by more than 30% in FY2017 to EGP22.5bn.
Mr Reda Abdel Moaty, vice chairman of the Financial Regulatory Authority (FRA) said the growth rates achieved by insurers in FY2017 were mainly due to the liberalisation of the exchange rate of the Egyptian pound in November 2016. Costs increased and assets had to be revalued in the wake of the 50% decline in the value of the pound as a result of the flotation.
He said the authorities are close to completing the necessary infrastructure for the insurance market through legislative reform. The draft new insurance law provides for certain compulsory classes of insurance. The insurance market will reap the benefits of legislative reform once the new insurance law is passed in Parliament, he said. M
EGP1 = $0.06