The Egyptian market is in need of 70 brokerage firms and merging is the new slogan for the coming phase.

The installments of EL-Sudan Branch recorded 30 million pounds during 2012. And 40% growth rate

We intend to expand in Libya and Jordan and the mother company to expand soon in 4 African countries.

Hamed Mabrouk, Managing Director of Gras Savoye Egypte mentioned during his interview with “Amwal AlGhad” that the insurance market in Africa poses tremendous growth rates that help in attracting investment and investors. He also expects the insurance sector to increase by 10% in the coming 10 years. Moreover, he pointed out that new foreign brokerage companies will enter the Egyptian Market and the small brokerage companies will merge together in order to increase their capital so as to compete strongly in the market.

How do you regard the growth rate opportunities for the insurance sector in Africa during the coming period?

The African continent is a promising market in all fields, especially in the insurance one. Which is expected to grow by 10% in the coming 10 years, this is due to the increase of the population rate along with the insurance saturation in the European market unlike the African market which  is “hungry” for new products.

What is your evaluation for the insurance brokerage sector during the current period?

Although brokerage is an integral part in the insurance sector, however, the 39 insurance brokerage firms here in Egypt are not that strong to cover the sector. I would also like to add that the Egyptian market will witness two important changes in this sector which are  the entrance of new foreign brokerage companies and the merging between the small brokerage firms for the sake of increasing its capital in order to compete strongly in the market.

Do you think that the Egyptian market has the capacity to absorb new brokerage firms in the coming period?

The Egyptian market is in need for 70 insurance brokerage companies to serve 30 insurance companies. The dilemma here is revolving around offering new services to the sector and its customers. The question here is how will an entity with a capital of 2 million survive the competition, prepare and train efficient cadres capable of providing non-traditional insurance products to customers and insurance companies.

What are the main challenges the brokerage firms are facing during the current period?

We are still suffering from the non-recognition of the role played by brokerage firms, as the insurance companies are issuing the insurance policies without resorting to the brokerages firms. However, I would like to highlight on the role played by Misr Insurance in its meeting with the brokerage firms in order to identify their problems and work on solving them.

Brokerage firms are also facing another challenge in collecting the installments from clients on behalf of insurance companies; this is due to the economic recession we are facing nowadays in Egypt.

What about the Union of insurance brokerage companies, still in the planning phase?

I can tell that the existence of this union is a must however; it should be approved from legislative authorities.

On the other hand, The Division of brokerage firms should be the suitable alternative until this happens especially as it do represent a large number of 29 brokerage companies working within the Egyptian market.

What is the size of installments expected to be achieved by Gras Savoye Egypt during 2013?

We target achieving a growth rate of 25% during this year –equal to 150 million EGP-.

Do you target any geographical expansions soon?

A new branch is expected to be inaugurated in Upper Egypt by the end of 2013 in addition to the other two branches inaugurated recently in the 5th district and Alexandria.

What about Gras Savoye Egypt recent news?

Some administrative restructures are being carried out currently for enhancing the company’s performance. Those restructures included appointing Mr. Khaled Mohie –Insurance Expert- as The Deputy Managing Director of the company’s commercial affairs.

How is the company’s branch in Sudan? And what are the expected growth rates during 2013?

Gras Savoye branch in Sudan could achieve growth rates better than the Egyptian branch in spite of the tight size of the insurance market there.in Sudan, the total volume of collected installments for insurance companies recorded 30 million EGP during 2012 however, we expect 40% growth rate during 2013.

Do you intend any external expansions during the near future?

The company targeted inaugurating a new branch in Libya two months ago but it was delayed due to some administrative procedures related to the Libyan Embassy in Egypt.

Recently, we had also signed a partnership agreement with “Guardian Insurance Brokers” in Jordan.

The mother company did some geographical expansions in extra four African companies included Kenya, Tanzania, Uganda and Mozambique however; it also studies inaugurating two new branches in Ethiopia and Angola.

What are the recent insurance activities assigned to insurance companies in Egypt and Sudan?

The company’s branch in Egypt had recently assigned a policyholder on “Transport Family Company” for “Mashreq Arabian insurance” company to cover all the risks.

On the other hand, the company’s branch in Sudan could acquire an insurance policy on a power plant owned by Citadel Capital and The Sudanese Social Fund for covering all the risks.