Egypt – Increasing interest rate positive for investment
Tuesday, 05 30 2017, Category: Insurance and Reinsurance, Country: Egypt
Insurance companies leaders expect that the decision to raise interest rates will have a positive impact on the investment return and policyholders’ rights as well as net profits. However, life insurers expect lower prospects in the next period due to the movements in the Egyptian Pound interest rate especially the policies sold to insure the lives of debtors since the volume of loans and investments is expected to decrease during the next period. Additionally, there are interest rate differences between saving policies and banking deposits.
Mr. Salah Abdel Fattah Managing Director of Misr Emirates Takaful Life Insurance Co said that life insurers are threatened by lower business prospects especially in credit life insurance due to lower crediting and investment activities in the next period.
Source: Al Mal News