FRA targets doubling insurance sector investments to LE 150B by 2022

CAIRO - 2 April 2018: Head of the Financial Regulatory Authority (FRA) Mohamed Omran said the authority aims to increase net investments of the insurance sector to LE150 billion by 2022 compared with LE86 billion in 2017.

At a press conference held Sunday evening at the premises of the Investment Ministry to announce the national strategy of the financial services for the period (2018-2022), Omran said upcoming plans include enlarging the contribution of the insurance sector to the Gross Domestic Product (GDP) to exceed 1 percent over the coming four years, in addition to doubling the installments of the insurance sector to reach EGP 50 billion by 2022 instead of the value of the previous year that reached EGP 24 billion.

He also said FRA is continuing work to strengthen the legislative environment and diversify services provided to those who deal in this sector so as to include more social categories and reach the target of insurance inclusion. It also aims at creating a social insurance network to involve school and university students and cover workers in the cargo transport business.

FRA facilitated and simplified many procedures and raised the efficiency of employees. It is worth mentioning that the contribution of insurance sector in GDP of Egypt during 2016 was 1.2%, he added.

For the first time in Egypt, FRA has issued two executive decisions to activate the E-issuance and distribution of insurance policies through the information systems networks, he said, adding that this comes in the light of FRA’s BOD approval on allowing the insurance companies to issue standard policy directly to the client of or to distribute it through entities defined by the Authority exclusively for each type, including insurance brokerage companies and travel agencies and tourism.

Also, FRA issued regulations related to the Vehicle insurance "known as compulsory motor insurance ", travel insurance policies as well as temporary life insurance policies that do not require medical examination, he noted.