Egypt – Insurance Federation studies capital adequacy
Tuesday, 03 14 2017, Category: Insurance and Reinsurance, Country: Egypt
Dr. Saeed Gabr Managing Director of Suez Canal Life Insurance Company and vice-chairman of the Insurance Federation of Egypt revealed that the insurance industry needs to cooperate with research centers at Egyptian universities in order to study the numerous challenges facing the sector such as the effect of the exchange rate of the Egyptian pound on the capital adequacy of insurance companies since the Egyptian pound lost a large part of its value after the liberalization of its exchange rate.
He added during a seminar on insurance awareness held at the Faculty of Commerce of the University of Cairo that the sector needs to study issue of the US Dollar and create an “insurance dollar” similar to the “customs dollar” in order to fix an exchange rate to be used by insurance and reinsurance companies, which will be fixed every six months or three months possibly in collaboration with the central bank or through a direct agreement between insurers and reinsurers.
Source: Al Mal News