Egypt’s insurance market prospects are encouraging

International rating agency Moody’s indicated that the future expectations for the insurance market in Egypt are “encouraging” despite challenges being faced by the country, the agency said in a report on Wednesday.

Highlighting obstacles being faced in Egypt, the Moody’s report indicated that high poverty, the shortage of skilled workers and other hurdles will somehow slow down the growth of the sector.

According to Moody’s, Egypt comes second place after Morocco, the biggest insurance market in North Africa, which is “a region that accounted for roughly 0.2% of global insurance premiums in 2014”.

Further, the report said that the growth of the insurance sector in Egypt during 2014 was slightly slower than the preceding year as growth increased 12.1% year on year YoY, a figure which is slightly lower than that witnessed in 2013 were growth stood at 15.6%.

Meanwhile, “over the past eight years (2006-2014), Egyptian insurance market (based on direct premiums written) has grown faster than North Africa with a CAGR of 14.6%, and slightly slower at a CAGR of 12.4% post-revolution (2011-2014),” the report highlighted.