Egypt – Lower oil subsidies to impact insurance
Wednesday, 07 05 2017, Category: Insurance and Reinsurance, Country: Egypt
The last decisions of the government to implement the second phase of the decrease in oil subsidies will impact insurance companies noting that insurers dreamed about premium increases following the decision of the central bank to liberalize the exchange rate and which led to the increase of the value of insured assets and properties.
However, insurers were surprised by the interruption of oil subsidies, which has an indirect impact on the sector due to the increase in inflation rates that will lead many customers to avoid purchasing insurance.
The managers of insurance companies expect the motor insurance line to be negatively affected by the increase of energy prices as the number of car sales will decrease during the next period.
Source: Al Borsa