Egypt – Increasing retention to meet international standards
Thursday, 08 04 2016, Category: Insurance and Reinsurance, Country: Egypt
International standards have proved the necessity of achieving a ratio of insurance companies premiums to capital and shareholders’ equity of 3:1. This was difficult to achieve by the Egyptian market in the latest period due to the low retention rate and limited scope of compulsory coverage.
Insurance experts confirmed that the challenge of the market can be dealt with by increasing the retention rate in the next period through different mechanisms including sound underwriting rules, risk diversification among companies, and limited cessions to foreign companies.