Egypt – Difficulties with motor reinsurers
Wednesday, 06 07 2017, Category: Insurance and Reinsurance, Country: Egypt
Mr. Ahmad Abu Al Aynayn, the previous manager of claims at Delta insurance said that the decision to liberalize the exchange rate of the Egyptian Pound in the beginnings of the last month of November weakened the Egyptian Pound compared to the US Dollar and led to an increase of the cost of motor claims as insurers have to reimburse the cost of imported motor spare parts paid in foreign currencies.
Mr. Abu Al Aynayn added that this change incited insurers to take preventive measures in order to limit the impact of price volatility.
He added that “there are difficulties faced by insurance companies in renewing reinsurance contracts with foreign reinsurers due to the increase in the value of claims which negatively impacted all insurance lines especially the motor line”.
Source: Veto Gate