According to a new report by global ratings agency AM Best, Egypt’s insurance market is displaying resilience despite facing challenging economic conditions in 2023.
The insurance sector in Egypt is encountering difficulties in sustaining real-term growth rates due to the impact of rising interest rates and inflation throughout the year. Despite these challenges, the market has demonstrated consistent growth, achieving a compound annual rate of 17.5 percent per annum over the past five years, with 2022 marking the sixth consecutive year of growth.
AM Best’s report predicts that premium growth is likely to continue in the coming years, with potential support from the introduction of mandatory insurance products and the adoption of digital distribution, which could increase insurance penetration, although starting from a relatively low base.
The Egyptian insurance market currently comprises approximately 40 licensed companies, with non-life insurers outnumbering life insurers.
In terms of the country’s economic performance, Egypt’s GDP experienced significant growth of 6.6 percent during the 2022 financial year, spanning from July 1, 2021, to June 30, 2022. This growth rate surpassed that of many emerging markets, reflecting a gradual recovery from the impact of the COVID-19 pandemic.
