Egypt – Insurance companies face USD crisis
Monday, 08 01 2016, Category: Insurance and Reinsurance, Country: Egypt
The green currency availability became a heavy burden on the shoulders of insurance sector officials in the Egyptian market especially given that the central bank gives the priority to securing strategic goods such as food and medicines. Therefore, the central bank neglects the insurance sector as it does not affect public opinion. Insurance officials clarified that that the shortage of US Dollar will have a negative impact on all parties because of the weakness of the local currency, which becomes more severe from time to time.
Reinsurance leaders in the insurance market confirmed that the shortage of US Dollar will have a negative effect on the financial statements of insurance companies as the depreciation of the Egyptian Pound will cause large losses to all parties. Additionally, the late settlements of due amounts will cause reinsurers to leave the local market although it is a promising and profitable.
Source: Al Mal News