Arab Misr Insurance Group

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Arab Misr Insurance Group
Development of the Egyptian Insurance Sector
www.amig.com.eg
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Development of Egyptian Insurance Sector
Within the framework of the State's plan for
economic reform and raising the efficiency of the
financial sector through a large-scale program
for financial and structural reform , A plan has
been developed to advance and activate the
Insurance Sector over a period of three years.
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Development of Egyptian Insurance Sector Contd

• The plan depends on the adoption of a lot of
  measures and reform actions, which nature is to
  advance the average of growth of that sector in
  proportion with the potentials which it enjoys.
• The strategy of the Ministry of Investment in
  this area was mainly aiming for the following
• Promotion of the investment policies
• Application and realization of conformity with
  the standards of World Control

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Development of Egyptian Insurance Sector Contd

• Activation of control over the Multinational
  Insurance Companies together with the local
  companies working in the market.
• Supervision and control to be according to the
  Risk Based Factor same applicable in the advanced
  countries

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Development of Egyptian Insurance Sector Contd
The Plan has already contributed in promoting the
average of performance in the market and
activating the role played by the insurance
sector in supporting the national economy. It has
also confirmed the control role and the
application of the standards of proper practices
of insurance professions, and organizing the
market in such away that allows a healthy
atmosphere for competition, that conforms with
the policies of market liberality and open-door.
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Development of Egyptian Insurance Sector Contd
The Most Important Indications of the Sector's
Performance First Contribution of
Insurance Sector in the National Economy Second
Development of the Structure of the Egyptian
Insurance Market Third Legislative
Reform The Most Important Indications of the
Future Plans First Legislative
Reform Second Expanding Developing the
Market Third Development of Special
Insurance Funds and Optional Retirement
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Development of Egyptian Insurance Sector Contd
First

• Contribution of Insurance Sector in the National
  Economy
• The following indications of the financial year
  2007 2008 affirm the continuity of the
  Insurance sector in performing the role entrusted
  to it in helping and supporting the national
  economy of the country
• Total Claims paid by the Insurance Companies
  LE 4.2 Billion ( 756K)
• Compensation paid by the Special Insurance
  Funds LE2.4 Billion (432K)
• Contribution of the Investment of the Insurance
  Companies in the GDP 3.6
• Contribution of the Special Insurance Funds in
  the GDP 2.4.
• Contribution of the Insurance Companies the
  Special Funds in the GDP1.25.

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Development of Egyptian Insurance Sector Contd
Contribution of the Insurance Sector in the
National Economy
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Development of Egyptian Insurance Sector Contd
Contribution of the Insurance Sector in the
National Economy (2003/2004 - 2007/2008)
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Development of Egyptian Insurance Sector Contd
Second
Growth Averages in the Insurance Market during
the financial year 2007 2008 1- Insurance
Companies The performance of the market in the
financial year 2007 2008 reflects a remarkable
development in the growth averages, especially
the growth average of the life insurance
premiums. The recent years have witnessed the
introduction of a lot of new companies, which
resulted in competition and offering distinctive
insurance products that meet the requirements of
the clients.
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Development of Egyptian Insurance Sector Contd
Development of Egyptian Insurance Companies (
2006/2007- 2007/2008)
in Billions of L.E.
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Development of Egyptian Insurance Sector Contd
Special Insurance Funds Development (
2006/2007 - 2007/2008)
in Billions of L.E.
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Development of Egyptian Insurance Sector Contd
The Performance Indications of the Insurance
Sector ( 2003/2004 -2007/2008)
The Development Indications of the Insurance
Companies
in Billions of L.E
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Development of Egyptian Insurance Sector Contd
The Performance Indications of the Insurance
Sector ( 2003/2004 -2007/2008)
in Billions of L.E.
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Development of Egyptian Insurance Sector Contd
Development Indicators of Special Insurance Funds
in Billions of L.E.
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Development of Egyptian Insurance Sector Contd
Development Indicators of Special Insurance Funds
in Billions of L.E.
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Development of the Structure of the Egyptian
Insurance Market

• 1- Insurance Companies
• The total Number of the Insurance companies in
  Egypt is 25 Companies divided as follows
• Two Public Sector Companies practicing Life and
  Non Life each.
• Twenty three Private Sector Insurance Companies
  divided as follows
• Three Companies practicing Life and Non- life.
• Seven Non- Life Conventional Insurance Companies
  .
• Three Non-Life Takfoul Insurance Companies.
• Six Life Insurance Companies.
• One Life Takfoul Insurance Company.
• One specialized Medical Insurance Company , one
  for Export and one cooperative.

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Development of the Structure of the Egyptian
Insurance Market Contd

• 2- Insurance Funds
• The number of Insurance Funds came to 642 funds,
  divided as follows
• 638 Special Insurance Funds
• 4 Government Insurance Funds
• 3- Insurance Pools
• Pool of Railways Freight and Carriage of
  Cottons Insurance Companies
• Egyptian Pool for Insurance of Nuclear
  Installations
• Pool of Insurance against Risks of Railways and
  Metro Accidents
• Egyptian Pool for Insurance of Civil Liability
  against Risks of Construction Works

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Development of the Structure of the Egyptian
Insurance Market Contd
The most important laws and decisions issued
were . Issuance of the Executive Regulations of
the New Law No. (72) of 2007 which aims at the
treatment and avoidance of the defects that faced
the practical application of the Law No. 652 of
1955. . Issuance of the Law No. 118 of 2008
regarding the amendment of some provisions of the
Law No. 10 of 1981 with the aim of imposing more
control on the insurance activities in Egypt, in
addition to the development of the mediation
profession in the domain of Insurance, through
the following
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Development of the Structure of the Egyptian
Insurance Market Contd

• The Control of the Insurance and Reinsurance
  Companies will be according to the Risk based
  factors.
• Increasing the minimum paid up capital to be EGP
  60 Million ( 11m) for any Life or Non-Life
  Insurance Company.
• Separation between practicing the Life and
  Non-Life Insurance for the existing cases( Five
  Companies) within a period of two years.
• Allowing the Brokerage firms ( Direct or R /I) to
  operate in Egypt.

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Development of the Structure of the Egyptian
Insurance Market Contd

• Raising the minimum issued capital to become
  EGP 60 million( 11m) for any Life or Non-Life
  Insurance Company.
• Separation between practicing the Non-Life and
  Life Insurance Companies for the exiting cases (
  Five Companies).
• Put in place all the regulations of the
  Bancassurance.

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Future Plan for Advancement of Insurance Sector
(2009 2012)

• Strategic Objectives
• Contribution in the improvement of work
  environment and control of competition .
• Increase of the contribution in the Gross
  Domestic Product (GDP) to attain the value of 2
  .
• Activation of the social responsibility toward
  the society .

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Future Plan for Advancement of Insurance Sector
(2009 2012) Contd
First Legislative Reform

• Issuance of the Law for Special Funds and
  Optional Retirement
• Issuance of the Law of the Health Care companies
• Activation of the Fund of the Protection
  Policy-Holders Rights
• Preparation of a draft-law for the insurance on
  the government buildings
• Activation of the Insurance Policy regarding the
  civil liability towards third parties for the
  owners of the projects and facilities which are
  designed to receive the public
• Issuance of the necessary legislations and
  standards for practicing the micro-insurance

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Future Plan for Advancement of Insurance Sector
(2009 2012) Contd
Second Expanding Developing the Market

• Expansion of the total size of the insurance
  sector as a whole, so that its contribution would
  be 2 of the Gross National Product (GNP) during
  the coming three years
• Encouraging the establishment of Cooperative
  Societies Insurance Organizations, and activating
  their role in the micro insurance
• Encouraging the establishment of optional
  retirement funds
• Encouraging the expansion in other markets
  through the establishment of branches to our
  national companies at the developing markets on
  the regional level .

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Future Plan for Advancement of Insurance Sector
(2009 2012) Contd
Second Expanding Developing the Market

• Endeavoring to conclude further memoranda of
  understanding on the international and regional
  levels to increase the exchange of the insurance
  transactions.
• Adoption of the project of applying the micro
  insurance in the market in order to attract the
  middle and poor segments of the society

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Arab Misr Insurance Group
End of Session
www.amig.com.eg