BMI View: It may well be that 2014 is seen as a landmark year in which Egypt ' s resilient insurance sector moved decisively onto a trajectory of high annual growth in premiums. The inconvenient ban on bancassurance came to an end at the beginning of 2014. The regulator has clearly indicated its intention to promote a number of positive reforms. These reforms include a major modernisation of the laws governing the insurance sector in Egypt and the possible introduction of compulsory lines (e.g. for expatriate Egyptians). The insurers themselves have been innovative, developing products that relate to the political violence that has been widespread. Takaful appears to be growing rapidly, albeit from a very low base.
The massive expansion of the capacity of the Suez Canal, which has been funded by the successful issuance of USD8.5bn in investment certificates in September 2014, will undoubtedly provide opportunities for the property & casualty insurers. Nevertheless, in a country where only 6% of the population actually use insurance, it is clear that there are substantial challenges yet to be overcome. For now we are cautiously optimistic, looking for growth in property insurance premiums of around 20% per annum. In other non-life lines and the life segment, the rate of expansion will likely be in mid-to-high single digits. We concede, though, that Egypt is a country where we may have to revise our forecasts by a significant amount prior to mid-2015: for now, we think that it is much more likely that we will be lifting the forecasts than reducing them.
For a very long time, Egypt's insurance sector compared unfavourably with those of other countries that are monitored by BMI. Key metrics such as penetration (premiums as a percentage of GDP) and density (premiums per capita) were at (very) low levels. Growth in premiums was consistently pedestrian. Regulatory change moved at glacial pace: some official decisions, such as the (now ended) ban on bancassurance,...
The Egypt Insurance Report has been researched at source and features Business Monitor International (BMI)'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.