Egypt – Negotiations with reinsurers interrupted by USD crisis
Thursday, 03 24 2016, Category: Insurance and Reinsurance, Country: Egypt
The Chairman and Managing Director of the Egyptian Life Takaful Company Mr. Hisham Abdel Shakur said that all the negotiations related to reinsurance with international reinsurance companies are almost interrupted because of the Dollar crisis. This could trigger a catastrophe for the Egyptian insurance market that will hardly hit insurers due to the shortage in US Dollar liquidity needed to settle the amounts due to international reinsurance companies. This in turn could terminate reinsurance contracts in Egypt and reinsurers will subsequently not pay their liabilities in case a catastrophe takes place.
Mr. Abdel Shakur asked the central bank to launch a mechanism to supply the needed USD amounts requested by insurance companies in collaboration with the Egyptian Financial Supervisory Authority.
Source: Youm 7