Egypt’s insurance premiums soar 34% YoY at June-end – FRA chair

Egypt’s Financial Regulatory Authority (FRA) reported on Monday a 34 per cent year-on-year growth in total insurance premiums, reaching 82.3 billion Egyptian pounds for the fiscal year ending June 2024, head of the market regulator said on Monday. This marks a significant increase from 61.4 billion pounds in the previous year.

Mohamed Farid, Chairman of the FRA, shared these figures during a meeting with the Insurance Committee of the American Chamber of Commerce in Cairo. The meeting focused on the FRA’s strategy to enhance the role of insurance in Egypt’s economy and the ongoing initiatives to foster digital transformation and expand insurance coverage.

In his keynote address, Farid highlighted the importance of the new Unified Insurance Law (No. 155/2024), which consolidates four previous laws into a comprehensive framework. The law, which aims to promote financial stability and insurance inclusivity, introduces new mandatory insurance types, including coverage for government assets and cyber risks. These developments align with Egypt’s national development goals, particularly enhancing the financial security of underserved communities.

The FRA has been actively working on expanding the insurance market through initiatives like microinsurance, designed to increase coverage for low-income individuals and small businesses, FRA chairman noted. He emphasised the sector’s critical role in responding to global challenges, such as geopolitical risks and climate change, by providing appropriate insurance coverage to protect both individuals and the national economy.

By the end of 2024, FRA oversees a total of 39 insurance companies, comprising 17 life insurance firms, 22 property insurance companies, 96 insurance brokerage firms, 31 damage assessment companies, and 9 consultancy firms. The FRA continues to focus on enhancing regulatory frameworks, expanding digital capabilities, and ensuring broader access to insurance services across all sectors of Egyptian society.

Farid also pointed out the crucial need for insurance companies to digitalise their financial transactions, stating that achieving insurance inclusivity and effectively reaching customers is impossible without embracing digital transformation and technological innovations. He also highlighted the growing role of financial technology in enhancing financial inclusion, stressing that without technology, the goal of widespread insurance access would remain out of reach.

The FRA chair confirmed that the authority will continue to roll out new regulations to meet market needs, while working closely with industry stakeholders to ensure the sector’s sustainable growth and its positive impact on Egypt’s economy.

Attribution: Amwal Al Ghad English