Egypt – Expectations of insurance price increases
Friday, 04 14 2017, Category: Insurance and Reinsurance, Country: Egypt
Mr. Osama Gabr, general manager of Issue Department at Royal Insurance Company said that some insurance companies started to increase prices but in specific lines.
Moreover, Mr. Gar added that “insurance price increases will affect motor, SRCC, in addition to fire insurance and accidents insurance”.
He added that some insurance contracts posted losses before the political turmoil and the security deterioration such as motor insurance. Therefore, some companies had to increase prices due to the increase in car thefts, which caused losses.
Mr. Gabr also expects that some reinsurers will become conservative in some lines if prices are not raised in SRCC. So this specific SRCC cover can be separated from fire insurance due to the increased risks indicating that prices in these lines will increase by 50% as a price correction. For example, motor insurance witnessed underpricing during the last period.
Source: Dostor Newspaper