Hamed Mabrouk, managing director of Gras Savoye Insurance Brokerage Company, expected that 20 out of 33 insurance brokerage companies in Egypt will go bankrupt in five years, noting that mergers are possible. Two insurance brokerage companies offered to merge with Gras Savoye, Mabrouk added.
These companies do not achieve adequate profit, as their founders do not have the proper knowledge as they thought that that insurance brokerage industry is close to that of stock brokerage, Mabrouk noted. The number of insurance brokerage companies shall be decreased, Mabrouk suggested.
Reducing the number of insurance brokerage market does not necessitate a certain law, as some companies will exit the market, Mabrouk added.
Insurance broker’s role is offering services for insurance companies in exchange for commission. Despite being the highest rates in North East Africa, there is no need to reduce the brokers’ commissions. There are only 10 active brokerage companies in the Egyptian market. Accordingly, there is a need to increase the insurance brokers to meet the requirements of the insurance companies.