Egypt – Fire cover price increase considered
Friday, 05 13 2016, Category: Insurance and Reinsurance, Country: Egypt
Insurance companies consider increasing the price of the fire insurance cover in an anticipatory move aiming at limiting the bill of catastrophic losses especially given the recurrence of fire accidents during the past two days. It is also reviewing the underwriting policy through a better selection of risks as reinsurance companies are expected to pressure the local market for a better pricing. Otherwise reinsurers would decrease the capacity offered or alternatively force companies to increase prices as a precondition to offer coverage. Egypt witnessed in the past two days more than 14 fire accidents.
Egyptian Takaful Property and Liability Insurance deputy managing director Mr Ahmed Morsy confirmed that a large number of companies operating in the market is currently reviewing the conditions of fire insurance contracts especially given the recurrence of accidents which reflected negatively on losses due to the increase in the claims bills.
Source: Al Mal News