Egypt – US dollar shortage main insurance challenge
Monday, 04 25 2016, Category: Insurance and Reinsurance, Country: Egypt
Mr. Abdel Raouf Kotb Chairman of the Insurance Federation of Egypt and Managing Director of the Egyptian Saudi Insurance House said that the insurance sector is facing 5 challenges in the Egyptian market during the current period, confirming that the decrease in the strategic reserves of foreign currency of insurance companies is one of these main challenges due to fears that Egyptian cedants will not be capable of honoring its liabilities to reinsurers.
Mr. Kotb added to “Amwal Al Ghad” that there is a coordination between the Federation and the Egyptian Financial Supervisory Authority in order to find a way to overcome this hurdle with the help of the Egyptian Central Bank by evaluating the amount of foreign currency needed and securing these monetary amounts to settle the due amounts to reinsurance companies.
Source: Amwal Al Ghad