The Chairperson of the Financial Regulatory Authority (FRA), Mohamed Omran, declared that the investments of the insurance companies in Egypt rose by EGP 99.3bn at the end of June, compared to EGP 85.5bn at the end of June 2017, a growth of 16.1%.
Meanwhile, he stated that the value of total assets of insurance companies reached EGP 112.4bn, up from EGP 98.1bn, a hike of 14.7%, according to the Middle East News Agency (MENA).
Omran added that the value of the total insurance premiums at the end of June 2018 increased by 23.3%, reaching EGP 29.5bn, compared to EGP 23.9bn in the same period in the previous year.
“The total amount of paid claims by insurance companies rose to EGP 15.4 bn, compared to EGP 12.9bn last fiscal year (FY), an increase of 19.5%,” according to Omran.
He also pointed out that the contribution of the insurance sector in the GDP reached 0.91% in the last FY.
Omran mentioned that the FRA is currently developing the legislation and laws governing the insurance activity and private insurance funds under the name of the Unified Insurance Law.
Adel Mounir, the secretary general of the Federation of Afro Asian Insurers and Reinsurers (FAIR), informed Daily News Egypt that the FRA has projects that will increase the contribution of
insurance in the GDP, explaining that the FRA is currently working in developing law number 10, which was issued in 1981.
He explained that it is a comprehensive law for all individual laws that affect insurance, such as compulsory insurance, private funds, takaful insurance, micro, and medical insurance.
“Thus, all of the aforementioned types of insurance will remain under the umbrella of one law, which is the comprehensive Law number 10 of 1981, and this will lead to having a strong insurance platform,” he stated.
“In terms of the FRA’s projects, there are several projects, such as insurance on students, who represent 18 or 20 million in Egypt, in addition to insuring governmental buildings,” Mounir continued.
He assured that all these will double the premiums, and of course the contribution of the insurance to the GDP.