Egypt – Facing the exchange rate shock with premium increases
Monday, 06 12 2017, Category: Insurance and Reinsurance, Country: Egypt
Inflation is known as the total average increase in the prices of goods and services in the economy of a country during a specific period. It is considered as a benchmark for the value of the currency. The increase in the prices of goods and services within an economy are the main indicators of inflation whereby the purchasing power of the national currency decreases and the purchasing power of money decreases.
Large sectors were affected by the increases in inflation rates following the reform decision taken by the government of the engineer Shareef Ismail, which liberalized the exchange rate of the Egyptian pound.
Insurance prices therefore increases. The premiums of “health, motor, fire and marine insurance increased between 40% to 100%. This led many customers not to purchase new insurance contracts given the priorities of life”.
Source: Veto Gate