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Non - Banking Financial
Markets

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Insurance sector is one of the most important non-banking financial activities. It is the main contributors to the GDP, as it is integrally linked to the rest of the economic sectors and contributes to risks’ management to which the economic assets may be exposed.  In this respect, insurance is considered one of the most important tools for the stability and continuity of the rest of non-banking financial sectors. The Authority has endeavored to activate the role of the insurance sector and increase its contribution to GDP by updating legislations governing it. It is worth mentioning that the financial results for 2018 indicate that the contribution of the insurance sector to GDP reached 0.91% in 2018 compared to 0.9% in 2017.

Within the framework of FRA’s efforts to activate digital transformation in insurance industry through the e-issuance and distribution of standard insurance policies that do not require complex subscription steps, FRA has included standard life insurance policy within insurance policies that are issued electronically. It is worth noting that 60 % of the insurance companies in Egypt are allowed by FRA to issue insurance policies in electronic form

During 2018, growth rate of insurance premiums was 23.4% compared to last year. The number of companies operating in this sector is 37 companies. The total premiums amounted to 30 billion EGP on 30/6/2018 compared to 2017 where the total premiums amounted to 24 billion EGP. On the other hand, companies paid total compensations of 15.4 billion EGP in 2018 compared to 12.9 billion EGP in 2017.

Despite the decline in insurance companies’ surplus by 23% to reach 3.7 billion EGP compared to last year where the surplus-reached 4.7 billion EGP, results of the companies’ activities have improved over the past four years. As in this period insurance surplus amounted to 3.6 billion EGP during 2018 compared to 2 billion EGP in 2014, which has had the effect of attracting more new investments in the insurance market through establishing  new companies.

 On 30 June 2018, net investments of insurance companies amounted to 99.4 billion EGP on a growth rate of 16% compared to net investments last year of 86 billion EGP.

While the total rights of policyholders - which represent the liabilities of the insurance companies towards their clients - was 61 billion EGP during 2018 compared to 54 billion EGP during 2017 with a growth rate of 12%. On the other hand, shareholders 'equity in insurance companies amounted to 38 billion EGP in 2018 with a growth rate of 23.3% compared to shareholders' equity of 31 billion EGP in 2017.