Egyptian insurance market showing resilience despite “challenging economic conditions”

With interest rates and inflation continuing to rise, the Egyptian insurance market is facing difficulties in sustaining growth rates in real terms, however the country is still proving resilient in the face of challenging economic conditions they are facing throughout 2023.

Across the previous five years, the sector has grown by a compound annual rate of 17.5% per annum, as measured in NWP denominated in Egyptian pounds (EGP), with 2022 marking the sixth consecutive year of growth.

Global ratings agency AM Best stated in a new report that it expects premium growth to persist in the coming years, supported by the potential for mandatory insurance products, and the digitalisation of distribution, which can increase insurance penetration (albeit from a low base).

Approximately 40 companies are licensed to operate in the Egyptian insurance market, with non-life companies outnumbering life insurers.

Moreover, Egypt’s GDP achieved 6.6% growth in the 2022 fiscal year (1 July 2021 – 30 June 2022), which was substantially higher than most emerging markets, as the effects of the COVID-19 pandemic continued to decrease.