BMI View: The depreciation of the Egyptian pound has undermined the value of the country's insurancemarket in US dollar terms. Exchange rate stability is likely to be achieved, but the resulting hit onhousehold income has undermined demand growth for non-compulsory lines while the cost of claims hasrisen. While USD premiums growth rates are set to turn positive from 2018, the effect of depreciation willbe felt for many years.
Key Updates And Forecasts
Non-life growth will be led by surging property insurance premiums with the segment set to rival thetraditionally dominant motor insurance segment. The larger non-life market is expected to expand toEGP11.3bn in 2017, following 11.7% growth. Over the period 2017-2021, non-life premiums shouldultimately reach EGP18.7bn. Motor and health will decline as a proportion of non-life premiums from28.9% and 10.6% respective to 25.1% and 8.6% respectively, while property will grow from 18.5% to24.0%.