High economic growth rates in Egypt benefit insurance market

Following a report by Moody’s on the Egyptian insurance sector, Daily News Egypt spoke with Mohammed Ali Londe, a MENA insurance analyst with the financial services company, who prepared the report, on his view of the Egyptian insurance market. In an October report, Moody’s said that the future expectations for the insurance market in Egypt are “encouraging”, despite challenges being faced by the country.

What is your outlook for the Egyptian insurance market?

When you have such low insurance penetration, you need to have good regulations in place, economic growth and economic stability to benefit the insurance market and its growth. This is why our outlook for Egypt is good as we see these three aspects are being put in place especially during the past few years.

How will the economic growth directly benefit the insurance market?

The direct effect of the economic growth appears in the number of upcoming projects in Egypt, which will require insurance later on. The second direct way is that these projects will create employment opportunities, which means that the projects will have more assets that will need insurance.