Egypt – Insuring imported equipment affected by EGP decline
Thursday, 03 17 2016, Category: Insurance and Reinsurance, Country: Egypt
Mr. Ahmed Morsy, head of the general committee for engineering insurance at Insurance Federation of Egypt confirmed that the insurance of equipment and devices is affected by the decline of the Egyptian Pound against the US Dollar. It depends on the size of the project, the part imported from a foreign country indicating that the insurance value depends on the need for imports.
Mr. Morsy said in statements to the “Veto Gate” that reinsurance operations during the next period undertaken with foreign companies would be heavily impacted due to the necessity of settling the amounts in USD, so companies operating in Egypt will have to adjust to new prices according to the exchange rate set lately by the central bank.
He added that the economic conditions should push for the cooperation among insurers noting that this could decrease reliance on foreign reinsurance. Therefore, reinsurance could alternatively be written among local companies using the local currency.
Source: Veto Gate