Instalments of new and current life insurance issues reached EGP 3.54bn between January and April, compared to EGP 2.8bn during the same period in 2014, representing a 25.8% increase. The new and renewed insurances on properties reached EGP 2.15bn, with a slight increase of 5.6%, compared to EGP 2bn over the same period 2014, head of the Egyptian Financial Supervisory Authority (EFSA) Sherif Samy announced Sunday.
Samy clarified that the petroleum sector has witnessed the highest increase percentage amongst properties insurance instalments, recording a 208% increase. This was followed by the aviation sector with 148%. The highest decrease was witnessed by the supplementary car insurance sector, reaching 20% and vessels bodies by 13%, compared to the first four months of 2014.
Moreover, in the first four months of 2015, the total value of compensations paid in properties insurance has reached EGP 1.3bn compared to 1.06bn during the same period 2014. Whereas, life insurance compensations reached EGP 1.28bn by April 2015, compared to EGP 1.1bn during the same comparison period, Samy added.
Furthermore, the number of cancelled insurance documents increased from 80,000 over the period from January to April 2014 to reach 86,000 during the same period 2015, according to Samy. He also noted that the document cancellation is done upon the client’s request or by the insurance company in case the due instalment is not paid.
Property insurance cancelled documents mark 75% of the total cancelled documents, mostly consisted in the supplementary and obligatory car insurance, whereas life insurance cancelation marked 25%.
Regarding private insurance funds, Samy noted that nine new funds were subscribed until the end of May 2015, while the primary system was amended to record 77 funds, with the elimination of five funds.
There are now 48 insurance brokerage firms in insurance and reinsurance by the end of May 2015, compared to 44 firms during the same period last year.
EFSA has received 311 complaints from January to May 2015 regarding insurance companies and private insurance finds, compared to 266 complaints during the same period 2014 marking a 17% increase.