CAIRO – 27 February 2017: American International Group (AIG) will no longer offer a variety of insurance policies as part of efforts to “reposition its operations in the Egyptian market,” the insurance organization said in a press release Monday.
“After careful consideration and a strategic market review, AIG will no longer offer Auto, Auto Fleet, Personal Property and Pre-Underwritten Home Insurance products in Egypt as of April 30, 2017,” the statement said.
Clients with existing aforementioned insurance policies will be allowed to continue to receive services until their policies’ renewal dates, AIG added.
“Our revised strategy will enable us to focus our resources on delivering the best service to our clients in product segments with the greatest potential for growth in Egypt,” AIG Egypt General Manager and MENA Managing Director Michael Jensen said.
The Egyptian automotive and housing markets have fallen on hard times in recent years, as the dollar shortage crisis and the floatation of the Egyptian Pound have resulted in price surges across all markets in the country and a reduced purchasing power for many companies and individuals.
The automotive sector reported a 32 percent decrease in car sales in the first half of 2016, according to
.
In an attempt to revive the automotive sector the government has been
with sector leaders to create an automotive industry strategy. The talks thus far produced three automotive summits and a
cabinet decision to pass
regulating the sector, according to Daily News Egypt.
Egypt’s housing market has been severely affected by mounting inflation. According to the business outlet
, the housing market accounts for 10 percent of the Egyptian gross domestic product (GDP) growth. The floatation and higher interest rates are driving down activity in the real estate market and contributing to increased property prices, according to
.
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