Egypt – The Insurance Market averts risks
Wednesday, 11 25 2015, Category: Insurance and Reinsurance, Country: Egypt
The insurance industry is based on the concept of containing risk by decreasing the probability of its occurrence. However, insurance companies are treating risks differently. Instead of studying them actuarially and pricing risks adequately, they are averting risks by imposing coverage exclusions due to the high risks which are not matched by sufficient premium prices. Moreover, price competition is being practiced at the expense of sound underwriting which in turn will have a negative impact on quality of service and claims settlement.
Furhtermore, Mr. Mohamad Hasan the Chairman of the Board of Directors of the “International” insurance brokerage company justified the coverage exclusions imposed by the high risks and huge losses if the retained part is high. So some insurers increase the deductible in order to encourage the customer to enforce safety standards.
Source: Al Mal News