Business Monitor International


Egypt Insurance Report

Published 04 November 2014

  • 82 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Egypt Insurance Report

BMI View:   It may well be that 2014 is seen as a landmark year in which Egypt ' s resilient insurance sector moved decisively onto a trajectory of high annual growth in premiums. The inconvenient ban on bancassurance came to an end at the beginning of 2014. The regulator has clearly indicated its intention to promote a number of positive reforms. These reforms include a major modernisation of the laws governing the insurance sector in Egypt and the possible introduction of compulsory lines (e.g. for expatriate Egyptians). The insurers themselves have been innovative, developing products that relate to the political violence that has been widespread. Takaful appears to be growing rapidly, albeit from a very low base.

The massive expansion of the capacity of the Suez Canal, which has been funded by the successful issuance of USD8.5bn in investment certificates in September 2014, will undoubtedly provide opportunities for the property & casualty insurers. Nevertheless, in a country where only 6% of the population actually use insurance, it is clear that there are substantial challenges yet to be overcome. For now we are cautiously optimistic, looking for growth in property insurance premiums of around 20% per annum. In other non-life lines and the life segment, the rate of expansion will likely be in mid-to-high single digits. We concede, though, that Egypt is a country where we may have to revise our forecasts by a significant amount prior to mid-2015: for now, we think that it is much more likely that we will be lifting the forecasts than reducing them.

For a very long time, Egypt's insurance sector compared unfavourably with those of other countries that are monitored by BMI. Key metrics such as penetration (premiums as a percentage of GDP) and density (premiums per capita) were at (very) low levels. Growth in premiums was consistently pedestrian. Regulatory change moved at glacial pace: some official decisions, such as the (now ended) ban on bancassurance,...

Table of Contents

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Business Environment
14
Industry Forecast
15
Total Premiums Forecast
15
Premiums
15
Table: Total Gross Premiums Written (Egypt 2011-2018)
15
Table: Total Net Premiums Written (Egypt 2011-2018)
16
Claims
16
Table: Total Insurance Claims (Egypt 2006-2013)
17
Life Premiums Forecast
18
Premiums
19
Table: Gross Life Premiums Written (Egypt 2011-2018)
19
Table: Net Life Premiums Written (Egypt 2011-2018)
20
Claims
20
Table: Life Insurance Claims (Egypt 2006-2013)
20
Healthcare Spending
21
Table: Insurance Key Drivers, Private Health Expenditure (Egypt 2011-2018)
21
Table: Insurance Key Drivers, Disease Adjusted Life Years (Egypt 2011-2018)
22
Non-Life Premiums Forecast
23
Premiums
24
Table: Gross Non-Life Premiums Written (Egypt 2011-2018)
24
Table: Net Non-Life Premiums Written (Egypt 2011-2018)
25
Reinsurance
25
Table: Reinsurance Non-Life Premiums Written (Egypt 2011-2018)
25
Claims
26
Table: Non-Life Insurance Claims (Egypt 2006-2013)
26
Non-Life Subsector Forecast
27
Table: Non-Life % Breakdown (Egypt 2011-2018)
28
Motor Vehicle And Transport Insurance
28
Table: Motor Vehicle Insurance (Egypt 2011-2018)
29
Table: Insurance Key Drivers, Autos (Egypt 2011-2018)
29
Table: Transport Insurance (Egypt 2011-2018)
31
Table: Insurance Key Drivers, Freight Tonnage (Egypt 2011-2018)
31
Property Insurance
31
Table: Property Insurance (Egypt 2011-2018)
32
Health And Personal Accident Insurance
32
Table: Health Insurance (Egypt 2011-2018)
32
Table: Personal Accident Insurance (Egypt 2011-2018)
33
Industry Risk Reward Ratings
34
MEA Insurance Risk/Reward Ratings
34
Table: MENA Insurance Risk/Reward Ratings
35
Market Overview
36
Life Market Overview
36
Table: Life Insurance Market (%) 2011-2012
39
Non-Life Market Overview
40
Table: Non-Life Insurance Market (US$mn) 2011-2012
40
Company Profile
47
American International Group (AIG)
47
Gulf Insurance Group (GIG)
50
MetLife
53
Misr Insurance Holding Company
56
Demographic Forecast
60
Demographic Outlook
60
Table: Egypt's Population By Age Group, 1990-2020 ('000)
61
Table: Egypt's Population By Age Group, 1990-2020 (% of total)
62
Table: Egypt's Key Population Ratios, 1990-2020
63
Table: Egypt's Rural And Urban Population, 1990-2020
63
Methodology
64
Industry Forecast Methodology
64
Risk/Reward Rating Methodology
67
Table: Indicators
69
Table: Weighting of Indicators
70

The Egypt Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's Egypt Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Egyptian insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for Egypt to test other views - a key input for successful budgeting and strategic business planning in Egypt's insurance market.
  • Target business opportunities and risks in Egypt through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

Regional Outlook

Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.

Business Environment Rankings

BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.

BMI Industry Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.

Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).

Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).

Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).

Competitive Landscape & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc