The life insurance market in Egypt is undergoing a noticeable shift in customer preferences, with rising demand for investment-linked products over traditional policies that have been heavily impacted by decades of high inflation, according to the Insurers Federation of Egypt (IFE).
In its latest weekly bulletin released on 30 November, the IFE explained that individual life insurance still represents a core pillar within the market, given the diverse solutions it provides that meet the different financial needs of individuals and families, such as savings policies, term protection policies and mortgage-related decreasing-balance policies.
The IFE said that unit-linked life insurance has seen increased sales in recent years as policyholders look to preserve and grow the value of their policies amid inflationary pressures. The value of a unit-linked policy is tied to the performance of its underlying investment portfolio—making the policyholder an active participant in investment returns.
The Federation stressed the importance of promoting a culture of insurance savings among citizens and encouraging insurers to develop products that are more capable of protecting customers from the erosion of purchasing power.
The Central Bank of Egypt has indicated that the average annual headline inflation in the country was 28.3% in 2024, and would ease to 14% in 2025 and 10.5% in 2026. Egypt’s inflation rate for 2023 was 33.88%.