Media Raises Fake Concerns On Reinsurance Agreements
There is no doubt that media was a main player in raising concerns elaborated about a fake disagreement between insurance companies and foreign reinsurance companies.
Dr. Adel Mounir, deputy chairman of Egyptian Financial Supervisory Authority, said the reinsurance agreements were not affected by the revolution or the political turmoil. The standards of these agreements were not changed amid last January amendments, Mounir added. In addition, the Egyptian market has attracted EGP one billion.
Fake news about disagreement between insurance companies and foreign reinsurance companies arises every year at the time of renewing contracts, Mounir noted. Foreign reinsurance companies are dealing with insurance companies on the basis of the financial results not the political situation of the country, Mounir added, affirming that the Egyptian insurance market did not face any difficulties in the reinsurance agreements.
Sherif El Ghamrawy, head of reinsurance committee at Insurance Federation of Egypt and general manager of reinsurance department at Suez Insurance Company, said the reinsurance agreements will not be affected by the current unrest. Reinsurance firms have agreed to add additional insurance coverage against riots and political violence which affirms that there are no disagreements over renewing the contracts, El Ghamrawy added, noting that foreign reinsurance companies consider the situation of the insurance market and not the political events.
Adel Fatouri, deputy head of reinsurance committee at Insurance Federation of Egypt and general manager of reinsurance department at Egyptian Saudi Insurance House, said there are still four months before the time of signing the reinsurance agreements, which means it is premature to say if the political turmoil will affect these agreements or not. There is only one company in Egypt which will sign the agreements by the beginning of the new fiscal year. These agreements will be based on the company’s financial results not the political events, Fatouri affirmed.
