• EFSA publishes the annual statistical book on insurance activity in Egypt
• Investments by insurance companies was amounted by 75 Billion EGP with an increase up to 9%
• The total rights of the policyholders of insurance policies is 46 billion pounds representing an increase by 9.4%
• Sherif Samy: We are keen on the efficiency and effectiveness of the insurance market and protecting the rights of policyholders
Sherif Samy – EFSA’s Chairman asserted that EFSA seeks the efficiency, effectiveness and stability of insurance market in Egypt, and protecting the rights of policyholders, in addition to its interest in achieving greater financial inclusion through introducing micro insurance system and allowing the issuance and distribution of E-insurance policies including compulsory motor insurance, travel accidents and temporary life insurance.
He explained that EFSA sees that it is necessary to include disputes and claims arising from applying the Law on Insurance Supervision and Control in Egypt within the laws covered by the jurisdiction of the Economic Courts in its law No. (20) of 2008, which grants the policyholders and insurance companies quick settlement of their disputes.
On the occasion of publishing the annual statistical book on insurance activity for fiscal year 2016 (ending June 2016), Sherif Samy pointed out that the total premiums increased during the year to 18.2 billion EGP compared to 16.2 billion EGP in the previous year , representing an increase by 12.4%.
He added that total property insurance premiums was amounted to 9.9 billion pounds, representing an increase up to 11.5 % from the previous year, while total premiums of life insurance was amounted to 8.3 billion pounds , representing a growth by 13.4 % during the year.
Sherif Samy emphasized that the number of insurance companies in Egypt reached 35, including 14 companies in the area of life insurance, 21 companies for Liability and Property Insurance and one cooperative insurance society. He noted that the total shareholders’ equity in these companies reached 11.2 billion EGP, representing a rise by 7.5% compared to the previous year.
EFSA’s Chairman added that the net investment in the year ended 30 June 2016 rose to 57 billion pounds compared to 52.5 billion pounds in the previous year, with growth by 9 %. He noted that the net investment income rose to 4.83 billion pounds, witnessing a slight increase. These investments include 15 billion EGP in saving certificates in banks, and 12 billion EGP in government bonds and 1.4 billion EGP in investment fund certificate.
On the other hand, the total rights of policyholders by the end of the year rose to 46 billion pounds compared to 42 billion pounds in the previous year by 9.4%.
He pointed out that retention rates was 57% compared to 55% in the previous year. The rate of loss decreased from 56% in 2015 to 47.5% in the year ending 30 June 2016.
It is worth mentioning that the insurance market in Egypt includes four insurance pools, namely Insurance pool of General Cargo in Rail Way & Cotton Transportation, Civil liability insurance for nuclear damage, Insurance society against dangers arising from trains and subways’ accidents, Civil liability insurance for dangers of construction