Egypt – Insurance overcomes fuel prices and value-added tax
Friday, 07 07 2017, Category: Insurance and Reinsurance, Country: Egypt
An informed source in the insurance sector that the impact of fuel price and value-added tax increases (by one percent) on insurance is limited. This is due to the action taken by the Egyptian Financial Supervisory Authority in coordination with the Insurance Federation of Egypt, which encouraged customers to increase the insured value of their properties following the liberalization of the exchange rate and its negative repercussions.
Moreover, Mr. Sherif Samy the chairman of the Egyptian Financial Supervisory Authority said that there will only a slight impact on the insurance sector due to energy prices, so the Authority will not have to intervene but it will reevaluate the situation in 7 months if needed.
He expected the inflation rate to range between 1% and 2% due to the decrease in oil subsidies, which cannot be compared with the liberalization of the exchange rate that triggered an inflation exceeding 31%.
Source: Al Mal News