Egypt – Dollar appreciation increases insurance losses
Monday, 02 15 2016, Category: Insurance and Reinsurance, Country: Egypt
The insurance consultant and previous Mr. Essam Rashed and previous manager of technical affairs at the Suez Canal Insurance Company said that the dollar appreciation increases the problems of the insurance sector given the absence of an Egyptian reinsurance company.
He also said that the difficulties facing Egyptian insurance companies in securing foreign currencies leads to additional losses since black market players abuse their needs for USD. Moreover, these conditions will lead foreign reinsures to impose tough conditions on Egyptian cedants by increasing prices.
He added that some companies operating in the Egyptian market will have thus to increase the prices of insurance policies in order to decrease losses according to the vision of each company, its administrative expenses, loss adjusting fees and its problems with foreign reinsurance companies.
Source: Veto Gate