Egypt – 18% increase in commission and production costs
Wednesday, 04 27 2016, Category: Insurance and Reinsurance, Country: Egypt
Commissions and production costs of insurance companies increased by 18% by the end of the last financial year compared to the year 2013-2014 with a EGP 434.5 million increase, where the total related costs increased to EGP 2.8 billion compared to EGP 2.4 billion approximately by the end of June 2014.
Commissions and production costs include direct commissions paid to employees selling products or brokers in addition to the inward reinsurance commission paid which is practiced by a limited number of companies in addition to production costs.
The Egyptian Financial Supervisory Authority said that the percentage increase in commissions is equivalent in both the private and public sectors. The share of public sector reached 50.5% with an amount of EGP 1.42 billion out of the total commission and production costs compared to 49.5% for the private companies with a total value of EGP 1.39 billion.
Source: Al Borsa