BMI View: We retain our core view for the Egyptian insurance market in our latest Q4 2016 report update. We are of the opinion that the market is projected to grow at a steady pace, albeit from a relatively low base. Economic growth has led to a rise in average household income rates, which in turn is heightening demand for life and non-life insurance products alike. Demand for key lines such as motor and health insurance remains high, and we are seeing a broadening in range of products available in the market. Key to growth will be the expansion of takaful and microinsurance products, which will enable insurers to access the large first time user market. Barriers to growth remain, however, including a fragmented marketplace and an uncertain regulatory environment.
|e/f = BMI estimate/forecast. Source: BMI, EFSA|
|Gross life premiums written, EGPbn||5.27||6.10||6.88||7.67||8.79||9.98||11.20||12.51|
|Gross life premiums written, EGP, % y-o-y||17.4||15.8||12.9||11.4||14.7||13.5||12.3||11.7|
|Gross life premiums written, USDbn||0.77||0.86||0.89||0.88||0.94||0.99||1.07||1.17|
|Gross life premiums written, USD, % y-o-y||3.7||12.4||3.8||-1.4||6.1||5.7||8.0||9.6|
|Gross non-life premiums written, EGPbn||7.52||8.20||9.08||10.10||11.48||12.97||14.51||16.18|
|Gross non-life premiums written, EGP, % y-o-y||15.1||9.0||10.7||11.2||13.7||12.9||11.9||11.5|
|Gross non-life premiums written, USDbn||1.09||1.16||1.18||1.16||1.22||1.28||1.38||1.51|
|Gross non-life premiums written, USD, % y-o-y||1.7||5.8||1.8||-1.5||5.2||5.1||7.7||9.4|
Key Updates And Forecasts
Takaful insurance is growing rapidly in Egypt. The Secretary-General of Insurance Federation of Egypt, Abdel-Raouf Kotb, recently reported that takaful insurance now accounts for 11.0% of the country's insurance market.
Work continues on drafts of a new health insurance bill which is expected to be presented by government to parliament. The new health insurance law will include the introduction of health insurance payments and will expand coverage, though we note it has come under significant criticism from medical practitioners in the country.
The non-life insurance market as a whole is set to grow by 12.3%, averaged annually between 2016 and 2020, with premiums reaching EGP16.2bn by the end of our forecast period.
Demand for property insurance will be a key driver of growth in the Egyptian non-life sector, where we expect premiums to rise by an annual average of over 18.0% (in local currency terms) between 2016 and 2020.
Substantial growth is also expected in the slightly smaller life insurance segment, where we expect premiums to grow by an annual average of just under 13.0% over the forecast period, increasing from EGP7.7bn in 2016 to EGP12.5bn in 2020.
The Egypt Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Egypt Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Egyptian insurance industry.
- Benchmark BMI's independent insurance industry forecasts for Egypt to test other views - a key input for successful budgeting and strategic business planning in Egypt's insurance market.
- Target business opportunities and risks in Egypt through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.