Egypt – 5 demands of brokers on insurers
Tuesday, 06 02 2015, Category: Insurance and Reinsurance, Country: Egypt
Insurance brokers whether individuals or companies made 5 main demands on insurance companies operating in the market in a proactive step aimed at strengthening strength. The five demands included the recommendation to decrease the price of some insurance products in order to stimulate sales, given that such decreases will not affect profitability as long as the law of large numbers applies, which will compensate the profit margin in addition to spreading risk.
The demands included also the necessity of reviewing the commission schedule and differentiating brokerage companies in the commission they earn since they bear administrative costs which are higher than broker individuals. The market should also be protected from price competition which exploits the competition among brokers where companies often offer different prices for the same operation. Finally, brokers requested the authority to issue some standardized coverages.
Source: Al Mal News