Egypt – Temporary impact of “Liberalizing EGP” on insurance
Friday, 11 18 2016, Category: Insurance and Reinsurance, Country: Egypt
Mr. Hammam Badr the Managing Director of Iskan Insurance Company said that the decision of the central bank in Egypt on the liberalization of Egyptian pound exchange rate will have some negative temporary repercussions on the insurance sector. Therefore, some reforms and procedures have to be followed in the next period in order to limit the losses resulting from this decision.
Mr. Badr added in an interview with “Amwal Al Ghad” that this decision will have a temporary negative impact on the sector for approximately one year. After this period, the sector will reap the positive benefits of the decision clarifying that the devaluation of the Egyptian Pound contributed to the decrease in the insured value of assets and equipment, so it will raise the repair and replacement costs in case a risk materializes. Thus, the total indemnification costs paid to customers will increase.
Source: Amwal Al Ghad